Answer:
Explanation:
For recording the transactions, the first step is to analyze each transaction from the source documents. After that reporting these transactions in a journal form. After that posting the entries to their respective accounts and then it would help to prepare the trial balance
The steps are shown below:
1. Analyze each transaction from source documents.
2. Record relevant transactions in a journal.
3. Post journal information to ledger accounts.
4. Prepare and analyze the trial balance.
Answer:
the depreciation that should be charged over the useful life each year is $20,000
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Purchase cost of an equipment - residual value) ÷ (useful life)
= ($135,000 - $15,000) ÷ 6 years
= $120,000 ÷ 6 years
= $20,000
hence, the depreciation that should be charged over the useful life each year is $20,000
Answer:
B. $600
Explanation:
The average cost method assigns a cost to inventory items based on the total cost of goods purchased (or produced) in a period divided by the total number of items purchased (or produced). Weighted Average Unit Cost is calculated by following formula:
Weighted Average Unit Cost = Total Cost of Inventory
/Total Units in Inventory
Total value purchased in July = $1,400+$220 = $1,620
Weighted Average Unit Cost = ($380+$1,620)/100 = $20
Ending inventory = 30 x $20 = $600
Noted: The company did not have date of selling merchandise. In the situation, assuming that the company uses periodic inventory system.
Answer:
Case A $581,757.17
Case B $500,000.00
Case C $416,910.21
Explanation:
Current price of a bond
The market price of a bond can be computed using the pv formula in excel, which is given as :
=pv(rate,nper,pmt,fv)
Where rate is the yield to maturity on the bond divided by 2 since the bond in question is semi-annual interest paying bond i.e
Case A 4%/2=2%
Case B 6%/2=3%
Case C 8.5%/2=4.25%
The nper is the time to maturity of the bond multiplied by 2 for the same reason cited for yield to maturity i.e 10 years *2=20
The pmt is the semi-annual coupon interest payable by the bond i.e 6%/2*$500,000=$15,000
The fv is the future value of the bond given as $500,000
Case A
=-pv(2%,20,15000,500000)
Pv= 581,757.17
Case B
=-pv(3%,20,15000,500000)
PV=$$500,000.00
Case C
=-pv(4.25%,20,15000,500000)
PV=$416,910.21