Answer:
a) $101354
Explanation:
To calculate the future balance of the interest-earning account use following formula
FV = PV x ( 1 + r )^n
Where
FV = Future value = Balance of Interest-earning account after 3 years = ?
PV = present value = Amounr deposited in the account = $90,000
r = Periodic interest rate = 4% x 6/12 = 2%
n = Numbers of periods = Numbers of years x Compounding periods per year = 3 years x 2 periods per year = 6 periods
Placing values in the formula
FV = $90,000 x ( 1 + 2% )^6
FV = $101,354
Answer:
The multiple choices are:
A) Deduct the check amount from the book balance of cash.
B) Add the check amount to the book balance of cash.
C) Deduct the check amount from the bank balance.
D) Add the check amount to the bank balance
The correct option is c,deduct the check amount from the bank balance
Explanation:
The check of $712 was already deducted from the cash balance in the cash book when issued,in order to reflect in the bank balance too,it would be appropriate to deduct from the bank balance so as to have a like-for-like situation.
This implies that the accountant at Clanton industries would begin bank reconciliation with bank balance in order to arrive at cash balance not the other way round.
Answer:
a. It is easier to raise finance as the business can sell shares.
Explanation:
A private limited company can be defined as a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested.
Some of the characteristics (features) of a private limited company include;
I. Shares can be issued by the private limited company to raise capital.
II. All the shareholders (owners) of a private limited company have limited liability.
III. After the death of a shareholder, a private limited company will continue to operate its business.
An advantage of operating a business as a private limited company is that it is easier to raise finance as the business can sell shares.
However, one of the disadvantages of a private limited company is that the general public are able to view a summary of their business accounts.
Answer:
$30,000
Explanation:
Calculation for the amount of equity income to reported
Using this formula
Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]
Let plug in the formula
Equity income = [($120,000 ×(15%+ 10%)]
Equity income = ($120,000 ×25%)
Equity income= $30,000
Therefore the amount of equity income to reported for 2012 will be $30,000
