Answer: It will take Nico approximately 12 years
Explanation:
Payments = $40000
r = 12%
Future Value = 1000 000
Future Value annuity = Payments((1 + r)^n - 1)/r
1000000 = 40000((1 + 0.12)^n - 1)/0.12
40000((1.12)^n - 1) = 1000000 x 0.12
(1.12)^n -1 = 120000/40000
(1.12)^n = 3 + 1
nlog(1.12) = log(4)
n = log(1.12)/log(4) = 12.232510748
n ≈ 12 years
It will take Nico approximately 12 years
Goodwell will recognize 3 months (Oct 1 - Dec 31) of rent revenue earned, and will reduce (debit) the unearned rent revenue for those 3 months.
2,500 x 3 months = 7,500
Journal Entry, Dec 31:
Unearned Rent Revenue: 7,500
Rent Revenue: 7,500
The new Unearned Rent Revenue Account balance will be:
12,500 - 7,500 = 5,000
Answer:
He should use a limit order.
Explanation:
Limit order is given to a broker to buy a stock at a specified price or a price that is better that the specified price. Here Debin order will be executed at a price $40 or below when he places a limit order .
Therefore, He should use a limit order.
Explanation:
The journal entry is as follows:
Land Dr $70,000
Additional paid in capital $5,000
To Common stock $75,000
(Being the common stock is issued in exchanged for cash)
The computation of the additional paid in capital is shown below:
= Common stock - the appraised value of land
where,
The common stock = 750 shares × $100 = $75,000
And, the appraised value of land is $70,000
So, the remaining balance is
= $75,000 - $70,000
= $5,000
The $5,000 would be recorded as an additional paid in capital
