Answer:
$51,600
Explanation:
Calculation to determine the total amount of interest revenue that Glade will earn over the life of the lease
Using this formula
Total interest = lease of equipment years *(Lease equipment fair value/ Present value of annuity due) -Lease equipment fair value
Let plug in the formula
Total interest=5* ($323,400/4.312)- $323,400
Total interest=5*$75,000-$323,400
Total interest=$375,000-$323,400
Total interest= $51,600
Therefore the total amount of interest revenue that Glade will earn over the life of the lease is $51,600
Answer:
YTM = 0.06409 or 6.409% rounded off to 6.41%
Explanation:
The YTM or yield to maturity is the yield or return that the bond will provide if it is purchased today and held till maturity. The formula to calculate the YTM will be,
YTM = [ (C + (F - P)/n) / ((F + P)/2) ]
Where,
- C is the coupon payment
- F is the face value of the bond
- P is the current value
- n is the number of years to maturity
Coupon = 1000 * 0.07 = 70
YTM = [ (70 + (1000 - 1062.50)/16) / ((1000 + 1062.50)/2) ]
YTM = 0.06409 or 6.409% rounded off to 6.41%
Answer:
b. debiting Accounts Receivable and crediting Sales.
Explanation:
When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include debiting Accounts Receivable and crediting Sales.
A perpetual system of inventory can be defined as a process of financial accounting, which involves the recording of informations about an inventory on a continuous basis (in real-time) as the sales or purchases are made through the use of enterprise management software applications and a digitized point-of-sale services.
In Accounting, to record a journal entry for a sale on an account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.
Under a perpetual system of inventory, updates of the journal entry for a sale would include debiting Accounts Receivable and crediting Sales immediately as it is being made or happening. This is to ensure that the inventory account balance is always accurate provided there are no spoilage, theft etc.
Answer:
1229.4
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$ 127,490 / ( $ 170 - $ 66.30) = 1229.4
