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mario62 [17]
3 years ago
5

Amdahl, Inc. leases a piece of equipment from BFF on January 1, 2018. The lease agreement calls for 5 annual payments of $33,000

to be paid by Amdahl at the beginning of the year (starting with 2018). Ownership of the equipment will transfer to Amdahl at the end of the fifth year. The explicit rate on this lease is 8%.
1. Prepare Amdhal's journal entries on January 1, 2018.
Business
1 answer:
Furkat [3]3 years ago
7 0

Answer:

See explainations below

Explanation:

There will be changes in both balance sheet and income statement:

1. Balance sheet:

At, January 1, 2018 both asset and liability will increase by the amount equal to present value of all lease payments:

Present value of all lease payments = 33,000 + 33,000/(1 + 8%) + ... + 33,000/(1 + 8%)^4 = 142,300.19

2. Profit and loss statement:

At, January 1, 2018 interest expense will increase by the amount equal to present value of all lease payments multiplied by the interest rate, or: 142,300.19 x 8% = 11,384.01

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7. Which of the following is NOT a function of money * 3 points A Unit of account B Store of value C Protection against inflatio
Nuetrik [128]

Answer:

C Protection against inflation

Explanation:

As we know that there are three functions of money i.e.

1. Unit of account

2. Store of value

3. Medium of exchange

There is only 3 functions of money that are shown above

So the protection against inflation would not be considered for the same

And, these 3 would represent the functions of money and can be treated as the unit of account, store of value and the medium of exchange

Hence, the option c is correct

5 0
3 years ago
Rosalie is a rather easy-going kind of woman. she works hard when she's at the office, but she refuses to do more than 40 hours
seropon [69]
<span>By the above mention condition we can conclude that Rosalie has a Type B personality. Some of the character traits involved in Type B are being flexible, emotional and expressive, relaxed and have a laid-back attitude. This Type B personality can help decrease the risk of heart disease.</span>
3 0
2 years ago
You purchased 250 shares of a particular stock at the beginning of the year at a price of $68.12. the stock paid a dividend of $
aniked [119]

Answer:

$9.18

Explanation:

Return on Investment is the actual profit / gain received on investment. In case of Investment in the stock the dividend and price appreciation is included in the return.

We will calculate the return on the investment in accounts.

Return = Dividend Received + ( Market Price of Stock - Initial price )

Return = Dividend Received + ( Market Price at the end of the year - Price at the beginning of the year )

Return = $0.85 + ( $76.45 - $68.12 )

Return = $0.85 + $8.33

Return = $9.18

5 0
3 years ago
Closing prices of two stocks are recorded for 50 trading days. The sample standard deviation of stock X is 4.638 and the sample
White raven [17]

Answer:

a) The correlation coeffcient is given by:

r = \frac{Cov(X,Y)}{S_x S_y}

And replacing we got:

r = \frac{-36.111}{4.638 *9.084}= -0.857

b) For this case we can conclude that we have a strong, negative linear association between the two stock prices.

Explanation:

Part a

For this case we have the following info:

s_x = 4.638 represent the sample deviation for the variable X

s_y = 9.084 represent the sample deviation for the variable Y

Cov(X,Y)= -36.111 represent the covariance between the variables X and Y

The correlation coeffcient is given by:

r = \frac{Cov(X,Y)}{S_x S_y}

And replacing we got:

r = \frac{-36.111}{4.638 *9.084}= -0.857

Part b

Describe the relationship between prices of these two stocks.

For this case we can conclude that we have a strong, negative linear association between the two stock prices.

5 0
2 years ago
Which statement is true?
gulaghasi [49]

the statement that is true is c

7 0
3 years ago
Read 2 more answers
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