$100 a month because it will reduce the amount of debt owed
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $4,100
Equipment A/c Dr $23,000
Furniture A/c Dr $47,000
To Account payable $16,000
To Rodriguez's Capital $58,100
(Being all adjustments are recorded and the remaining balance is credited to Rodriguez's Capital.
Remaining balance is calculated by
= Cash A/c + Equipment A/c + Furniture A/c - Accounts payable
= $4,100 + $23,000 + $47,000 - $16,000
= $74,100 - $16,000
= $58,100
The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
<h3>
What is depreciation expense?</h3>
- Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
- Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
- A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
- The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).
The straight-line technique of calculating depreciation expense is given below:
- = (Original cost - salvage value) ÷ (useful life)
- = ($173,000 - $8,600) ÷ (10 years)
- = ($164,400,000) ÷ (10 years)
- = $16,440
In this method, the depreciation is the same for all the remaining useful life.
Now for the 7 months, the depreciation expense would be:
- = $16,440 × 7 months÷ 12 months
- = $9,590
Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
Know more about depreciation expenses here:
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The correct question is given below:
A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.
(A) $16440.
(B)$9590.
(C)$8220.
(D)$6850.
Answer:
12.38% decrease
Explanation:
Given the following parameters
6%
Number of years = 12
Market yield I= 6 === 4.5
Present Value = 916.16 == 1045.59
PMT (annuity payment) = 50 (5%x1000)
Future value = 1000
Therefore, to solve for the percentage change, we have in the price of this bond in this situation, we have (916.16-1045.59) / 1045.59 = -0.1238
Hence, 12.38% decrease is the percentage change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%,
