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tangare [24]
3 years ago
13

Please answer the following:

Business
1 answer:
Anarel [89]3 years ago
6 0

Answer:

Depreciation expense Office equipment = 1,200.00

Depreciation expense Computer equipment = 5,000.00

Explanation:

The difference between accumulated depreciation represents the depreciation charge that was made during the first quarter of the 2018 accounting year.

Then depreciation charges for the first quarter are calculated as follows:

Depreciation expense Office equipment = 800 – 400 = 400

Depreciation expense Computer equipment = 2,500 – 1,250 = 1,250

Since there are 4 quarters in an accounting year, the depreciation charge in 2018 is calculated as follows:

Depreciation expense Office equipment = 400 * 4 = 1,200

Depreciation expense Computer equipment = 1,250 * 4 = 5,000

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2 years ago
Read 2 more answers
Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank account at the end of each of t
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Answer:

Amount at the end of twentieth year is $12,300

Explanation:

Annuity means a set of fixed amount of payments either made to you or paid by you , at a fixed number of times over a course of defined period.

The case given in the question is of ordinary annuity , where fixed amount of payment are required at the end of each period.

FORMULA FOR FUTURE VALUE ORDINARY ANNUITY =

               

Where, C(cash flow) = $300,

            I(interest rate) = 7%

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           FV ( Future value)

FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= CASH\ FLOW(C)\times \left [ \frac{1+I^{N}-1}{I} \right ])

FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{1+7\%^{20}-1}{7\%} \right ])

FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 1.07\ ^{20}-1}{7\%} \right ])

FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 3.87\ -1}{7\%} \right ])

FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 2.87}{7\%} \right ])

= 861/7%

= $12,300

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3 years ago
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