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Vesnalui [34]
3 years ago
13

Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rat

e of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? Multiple Choice $960 in Year 1 and $0 in Year 2 $0 in Year 1 and $960 in Year 2 $240 in Year 1 and $720 in Year 2 $720 in Year 1 and $240 in Year 2 Next
Business
1 answer:
erastovalidia [21]3 years ago
8 0

Answer:

The correct answer is $720 in Year 1 and $240 in Year 2 Next.

Explanation:

According to the scenario, the given data are as follows:

Loan Amount =$16,000

Rate of interest = 6%

Time period for first year (Apr - Dec) = 9 months

Time period for second year ( Jan - Mar) = 3 months

So, we can calculate the amount of interest by using following formula:

For first year:

Amount of interest (1st year) = $16,000 × 6% × 9 ÷ 12 = $720

Amount of interest (2nd year) = $16,000 × 6% × 3 ÷ 12 = $240

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4 0
2 years ago
Civil engineering consulting fi rms that provide services to outlying communities are vulnerable to a number of factors that aff
Evgen [1.6K]

Answer:

$894,336

Explanation:

The computation of the present worth of two contracts is shown below:

= (Stable income × PVIFA at 3 years for 10%) + (Signed amount × PVIFA at 2 years for 10%) × PVF at 3 years for 10%

= ($260,000 × 2.4869 ) + ($190,000 × 1.7355 ) × 0.751314801

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Refer to the PVIFA table and the discount factor table so that the correct amount could come

7 0
4 years ago
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $2.00 par, common shares, t
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Answer:

No journal is needed

Par value  is now $1

Explanation:

There is journal entry for stock split no new funds were received from stockholders and the fact that the equity stockholders capital remain the same after the stock split.

It is a mere book redenomination where the number of outstanding shares in issue is increased while the par value is reduced  proportionally.

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The par value after stock split=1/2*$2=$1

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3 years ago
Suppose that we want to evaluate the effect of several variables onannual saving and that we have a panel data set on individual
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Answer:

Following are the responses to the given question:

Explanation:

Note that others will therefore increase his age by two percent from 2009 to 1992.

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And if the trend is running:

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We're breaking MLR.3 as \Delta agei it's the same for all -> No different from a permanent designer cannot immediately distinguish the influence of age from the aggregate time effect because age changes per person by the same amount.

6 0
3 years ago
Your store sells four varieties of 20 oz. sodas costing $1.25, $1.45, $1.10 and 1
-Dominant- [34]

The mean is the average.

Add the 4 prices together and then divide by 4.

1.25 + 1.45 + 1.10 + 1.32 = $5.12

5.12 / 4 = 1.28

The mean price is $1.28

4 0
2 years ago
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