Answer and Explanation:
The journal entries are as follows
a. Cash $210,500
To Common Stock (12,000 × $14) $168,000
To Paid in capital in excess of par value-Common Stock $42,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
b. Cash $210,500
To Common Stock $210,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock as it also increased the stockholder equity
c. Cash $210,500
To Common Stock (12,000 × $7) $84,000
To Paid in capital in excess of stated value-Common Stock $126,500
(being the issue of the common Stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
To calculate the lease payments we use the excel function PMT as in =PMT(rate,nper,pv,fv,type)
Rate = 11.2% Compounded monthly
Rate = 11.2%/12 (Monthly rate)
NPER = 24 months = 24
PV = 2650
FV =0
TYPE = 1 (Since the payments are due immediately meaning this is an annuity due)
So, monthly payment =PMT(11%/12,24,2650,0,1) = $122.39
Your monthly lease payments should be = $122.39
Answer:
B. It would increase each year by 3 percent.
Explanation:
Given
Pension = $50,000 in first year
Increment = 5%
Inflation = 2%
Inflation doesn't only affect the value of an investment, it also influence the liabilities of a pension fund.
Consider a pension plan which gives a worker a benefit based on final average salary; A slight increase in the inflation would reduce the worker's real benefits in the years after retirement.
So, instead of Terry's pension to increase by 5% each year,
It'll increase by 3%
This is calculated by subtracting the inflation rate from the real increment rate.
5% - 2% = 3%
Answer: permanent
Explanation:
From the question, we are informed that Tang City received land from a donor who stipulated that the land must remain intact, but any income generated from the property may be used for general government services.
Based on the above scenario that have been explained, the donated land should be recorded in the permanent funds.
Answer:
The total amount paid to bondholders is $2,420.
Explanation:
Bonds are long-term liability or debt, usually issued at face value, discount or premium.
The total amount paid to bondholders on December 31, 2018 will be the semiannual interest payments, calculated as follows: Face value of the bond x Period interest rate (semi-annual).
Total payment: $44,000 x 11% / 2 = $2,420