Answer: option A is the correct option.
Cash price = 106.00
Explanation:
Cash price = quoted price + accrued interest
CP = Qp + I ..........................(1)
Quoted price = 105
Accrued interest = ?
STEP1 : FIND INTEREST;
Because the interest is not compounded
Accrued Interest = PRT ..........(2)
P= principal ( the face value)
R = rate per annum
T= period
P= 100
Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).
Therefore;
R = 6%
Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.
Therefore;
T = 30/180
Therefore using equation 2
I = 100 × 6% × (30/180) = 1.00
Accrued interest= 1.00
STEP 2: FIND CASH PRICE
using equation 1
Cash price = 105 + 1.00 = 106.00
Answer:
$205,000
Explanation:
Let us assume Owners' equity at the beginning be X
So, the Increase in Owners' equity is $260,000 - X
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
So,
Total Increase in Assets = Total Increase in Liabilities + Increase in Owners' equity
$134,000 = $79,000 + $260,000 - X
$134,000 = $339,000 - X
So, the X =
= $339,000 - $134,000
= $205,000
Cost on January 1 2016 = $1,250,000
Life = 10 years
Therefore,
Double-declining depreciation rate = 2*(1,250,000/10)/1,250,000 = 2*0.1 = 2*10% = 20%
Book value at end of 2016 = 1,250,000 - (1,250,000*20/100) = $1,000,000
Book value at end of 2017 = 1,000,000 - (1,000,000*20/100) = $800,000
Book value at end of 2018 = 800,000 - (800,000*20/100) = $640,000
Changing to straight line depreciation:
Life remaining = 7 years
Book value = $640,000
Depreciation expense per year = 640,000/7 = $91,428.57
Therefore, depreciation expense for 2019 = $91,428.57
Answer:
See answers below in the explanation
Explanation:
Journal Entries :
Journals
<u>Date Account and Explanation Debit Credit
</u>
a Accounts receivable 210300
Service Revenue 210300
(Record earned revenue)
Cash 62300
Service Revenue* 62300
(Record earned revenue)
b cash 199100
accounts receivable** 199100
(Record collection Account)
*$41000+$20500=$62300
**$4400+$210300-$$15600=$199100
c Supplies 62900
Accounts Payable 62900
(record purchase of supplies on credit)
d Supplies 7400
Cash 7400
(record purchase of supplies
e Wages Payable 14200
Cash 14200
Record Payment of previous wages
Wages Expenses 112000
Cash 112000
(Record Payment to Employees)
f Income Tax payable 15100
cash 15100
(Record Payment of Income taxes
g Accounts Payable 73000
cash 73000
(record payment of account)
h Interest Expense 2700
Interest Payable 2700
Cash*** 5400
(Record Payment of Interest)
i No journal entry required
j Property Taxes Expense 17000
cash 17000
(Record payment of property taxes)
k Dividends 7200
Cash 7200
(Record Payment of dividends)
*** $60000*9%=$5400