Answer:
31-Aug-22
Dr Bank Account 60
Cr Interest Received for the month of Aug22 60
31-Aug-22
Dr Sundry Creditors 360
Cr Bank Account 360
31-Aug-22
Dr Bank Charges Dr 105
Cr Bank Account Cr 105
Explanation:
Preparation of the adjusting entries to be made by Sage Hill Inc. at August 31
31-Aug-22
Dr Bank Account 60
Cr Interest Received for the month of Aug22 60
(To record Interest earned)
31-Aug-22
Dr Sundry Creditors 360
Cr Bank Account 360
($400-40)
(To correct error in recording check)
31-Aug-22
Dr Bank Charges Dr 105
Cr Bank Account Cr 105
($65+40)
(To record service charge and safety deposit box fee)
Answer:
$3,716.37
Explanation:
Initial investment $70,000 (cost of the equipment)
Depreciation expense per year = (cost- salvage value) / useful life = ($70,000 - $0) / 5 years = $14,000
net cash flows per year (the same for every year):
[(revenues - operating expenses - depreciation expense) x (1 - tax rate)] + depreciation expense = [($30,000 - $11,000 - $14,000) x (1 - 30%)] + $14,000 = $3,500 + $14,000 = $17,500
year NCF
0 -$70,000
1 $17,500
2 $17,500
3 $17,500
4 $17,500
5 $17,500
6% discount rate
using a financial calculator, the NPV = -$70,000 + $73,716.37 = $3,716.37
$73,716.37 is the present value of the 5 future cash flows
Answer:
The correct answer is (c)
Explanation:
Bonds and stocks are used to generate financing. The city of Fargo has issued bonds to finance the construction of a new fire station. The bond is a type of debt funding and the premium must be transferred to a debt service fund. A debt service fund will be used to pay out the principal payments on those bonds.
Answer:
Net income under absorption costing would be $ 250,000
Explanation:
Mortech Company
Net Income variable costing $250,000
Variable Costing Absorption Costing
Sales Sales
Less Variable Costs Less Product Costs ( Variable + Fixed)
Contribution Margin Gross Profit
Less Fixed Costs Less Period Costs ( Variable +fixed)
Net Profit Net Profit
Net income under both the methods remains the same unless there is a difference in fixed costs for certain items.
