Answer and Explanation:
The adjusting entry is given below:
On Dec 31,2017
Unearned Rent Revenue $25,000 ($75,000 × 4 months ÷ 12 months)
To Rent Revenue $25,000
(Being revenue earned is recorded)
Here unearned rent revenue is debited as it decreased the liability and credited the rent revenue as it increased the revenue
1) A student loan is an example of an unsecured debt. A secured debt is when a person has something as collateral like their automobile.
2) Unsecured debts usually have higher interest rates when compared to something with a secured debt.
Answer:
$7.08
Explanation:
In short, Value of Call option = Stock Price - Strike Price
Current Value of Strike price = 22.50 * (1+2.8%)^-1
Current Value of Strike price = 22.50 * (1.028)^-1
Current Value of Strike price = 22.50 * 0.9727626459143969
Current Value of Strike price = 21.88715953307393
Current Value of Strike price = $21.89
Current Value of Stock = $28.97
Thus, Value of Call option = $28.97 - $21.89
Value of Call option = $7.08
Answer:
The vertical analysis based on net sales would show 45.94% and 74.13% for cost of goods sold.
Explanation:
Vertical Analysis: The vertical analysis does the analysis of the financial statements which is based on the sales value.
In mathematically,
Vertical Analysis = Financial Statement item ÷ sales value × 100
So,
For the cost of good sold. the vertical analysis would be:
For the Latest amount of cost of good sold:
= Latest amount of cost of goods sold ÷ Latest sales value × 100
= $17,000 ÷ $37,000 × 100
= 45.94%
For the updated amount of cost of goods sold:
= updated amount of cost of goods sold ÷ updated sales value × 100
= $43,000 ÷ $58,000 × 100
= 74.13%
Hence, the vertical analysis based on net sales would show 45.94% and 74.13% for the cost of goods sold.
Answer:
$114,193.55
Explanation:
The calculation of value of the firm is shown below:-
Value of the firm = (((EBIT × (1 - Tax)) ÷ Cost of capital) + (Debt × Tax)
=((($17,100 × (1 - 21%)) ÷ 12.4%) + ($25,000 × 21%)
= ((($17,100 × (0.79)) ÷ 12.4%) + ($25,000 × 21%)
= ($13,509 ÷ 12.4%) + ($25,000 × 21%)
= $108,943.55 + $5,250
= $114,193.55
So, for computing the value of the firm we simply applied the above formula.