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Kcloughley
11.02.2020 •
Business
Voss Inc., an accounting firm, adjusts and closes its accounts each December 31. Below are two situations requiring adjusting entries. 1. During the current year, supplies were purchased for $1,125 cash. The inventory of supplies at the prior year-end was $225. At the current year-end, inventory remaining was $360. Prepare the adjusting entry required for each of the following separate cases.
a. Case A-the $1,125 was debited to Supplies Expense. What is the balance of Supplies at year-end? General Journal Ref. Account Name Dr. Cr. Case A Supplies 0 x 0 Supplies Expense 0 0 x Case A: Balance of Supplies at year-end: $ 0 b. Case B-the $1,125 was debited to Supplies. What is the balance of Supplies at year-end? General Journal Ref. Account Name Dr. Cr. Case B Supplies 0x 0 Supplies Expense X O 0x Case B: Balance of Supplies at year-end: $ 0 2. On September 1, the company collected $12,600 cash, which is for services to be performed over the next 12 months.
Prepare the adjusting entry required for each of the following separate cases. a. Case A-the $12,600 was credited to Service Revenue. What is the balance of Deferred Service Revenue at the year-end?
General Journal Ref. Account Name Case A Cash Service Revenue Dr. 0x 0 0 Ox Case A: Balance of Deferred Service Revenue at year-end: $ b. Case B—the $12,600 was credited to Deferred Service Revenue. What is the balance of Deferred Service Revenue at the year-end? General Journal Ref. Account Name - Dr. cr. Case B Service Revenue * 0* 0 Deferred Service Revex 0 0 x Case B: Balance of Deferred Service Revenue at year-end: $ O
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Ответ:
The answer 9.88%
Explanation:
Value of Debt = $100,000
Value of Preferred Stock = $30,000
Value of Equity = $140,000
Weight of Debt = $100,000 / $270,000
Weight of Debt = 0.37
Weight of Preferred Stock = $30,000 / $270,000
Weight of Preferred Stock = 0.11
Weight of Equity = $140,000 / $270,000
Weight of Equity = 0.52
After Tax Cost of Debt = 8.7% (1 – 0.40)
After Tax Cost of Debt = 5.22%
WACC = (Weight of Debt x After Tax Cost of Debt) + (Weight of Preferred Stock x Cost of Preferred Stock) + (Weight of Equity x Cost of Equity)
WACC = (0.37 x 5.22%) + (0.11 x 9.9%) + (0.52 x 13.2%)
WACC = 9.88%