What does the international banking system consist of?

Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2018. What amount of dividends did the compan

MArishka [77]

Answer:

The company paid in dividends the same amount of the Net Income of the Year 2018

Explanation:

If the company keeps the retained gains at zero balance it means that each dollar the company gains during the year it's paid in dividends.

During the year the company gain money from its operations, the total Profit or Losses are reflected in the Financial Statements, if the company gains money and the Retained Earnings are zero, it means each dollar is paid in dividens, the amount available to paid is the Net Income of the Income Statement.

7 0

3 years ago

On January 1, 2020, National Retail purchased $100,000 of GEH Company bonds at a discount of $10,000. The GEH bonds pay 6% inter

rusak2 [61]

Answer:

Cr Interest revenue $3,624

Explanation:

Dr Investment in bonds 100,000

Cr Cash 90,000

Cr Discount on investment in bonds 10,000

the first coupon payment:

(90,000 x 4%) - $3,000 = $600

Dr Cash 3,000

Dr Discount on investment in bonds 600

Cr Interest revenue 3,600

the second coupon payment:

(90,600 x 4%) - $3,000 = $624

Dr Cash 3,000

Dr Discount on investment in bonds 624

Cr Interest revenue 3,624

4 0

3 years ago

Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper

Vika [28.1K]

Answer:

Desing A: 23,024,370‬

Desing B: 22,520,274.6

It should purchase desing B as the capitalized cost is lower.

Explanation:

We consider annuity for the overhauls and then, perpetuity to consider this incinerators will last indefinitely.

maintenance cost: 800,000 / 0.05 = 16,000,000

Overhaul:

The company will need to fund 1,250,000 every 5 years. We need to determinate the annuity to obtain this future value:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

PV 1,250,000

time 5

rate 0.05

$1250000 \div \frac{(1+0.05)^{5} -1}{0.05} = C\\$

C $ $ 226,218.498

Then at perpetuity:

$ 226,218.498 / 0.05 = 4,524,370

Desing A capitalized cost:

2,500,000 + 16,000,000 + 4,524,370 = 23,024,370‬

We do the same for Desing B:

investment: 5,750,000

maintenance: 600,000 / 0.05 = 12,000,000

overhaul:

$3000000 \div \frac{1-(1+0.05)^{-10} }{0.05} = C\\$

C $ 238,513.725

238,513.73/0.05 = 4,770,274.6

Capitalized cost: 5,750,000 + 12,000,000 + 4,770,274.6 = 22,520,274.6‬

8 0

3 years ago

On October 1, Bramble's Carpet Service borrows $362000 from First District Bank on a 3-month, $362000, 6% note. What entry must

Luba_88 [7]

Answer:

Dr Interest expense -$21,720

Cr interest Payable - $21,720

Explanation:

Interest

Since it is a short-time loan (3-month), the interest rate will be prorated to 3-month.

Interest expense = $362,000 × .06 × 3/12 = $21,720

Hence, following entries will be recorded :

Dr Interest expense -$21,720

Cr interest Payable - $21,720

For Principal amount Borrowed:

Cr Loan payable $362000

Dr. Bank Account $362000

Upon Settlement :

Dr. Interest Payable $21,720 and Cr Bank Account $21,720

Dr. Loan payable $362000 and Cr Bank Account $362000

4 0

3 years ago

Which savings account will earn the most interest?

mestny [16]

Answer:

it would be 10,000 for 4.00% interest for 4 years.

Explanation:

the reason is the amount would turn out at 10,824 dollars and you earned 824 dollars in income.

3 0

3 years ago