Given that a<span>
factory machine was purchased for $375000 on january 1, 2018. it was
estimated that it would have a $75000 salvage value at the end of its
5-year useful life. it was also estimated that the machine would be run
40000 hours in the 5 years. the company ran the machine for 4000 actual
hours in 2018.
If the company uses the units-of-activity method of
depreciation, the amount of depreciation expense for 2018 would be
</span>
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Answer:
Option C is correct
Explanation:
The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000
The discount on bonds payable=Face value-cash proceeds
The discount on bonds payable=$1,000,000-$960,000=$40,000
The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively
Answer:
b. −1.79 percent
Explanation:
You can solve this using a financial calculator. I'm using TI BA II plus ;
First, find Price of the bond if YTM = 5.5%. Since it is semi-annual, adjust the YTM and total duration;
N = 13*2 = 26
I/Y = 5.5%/2 = 2.75%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1046.01
Next, find Price of the bond if YTM = 5.7%.
N = 13*2 = 26
I/Y = 5.7%/2 = 2.85%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1027.28
Percentage change =[ (New price- Old price)/Old price] *100
= -1.79%
Answer:
<em><u>Decrease:</u></em>
a)advertising expense
c) Insurance expense
d) Salaries & Wages Expense
g) Utilities Expens
<em><u>Descrease:</u></em>
e) Dividends
<em><u>Increase:</u></em>
b)Service revenue
f) Rent revenue
Explanation:
The retained earnings accumulates the net income of every year.
As net income is determinate like:
revenues - expense = gross profit
expense will make this difference lower and therefore not beign able to help you These are the changes for:
adv expense
service revenue
insurance exepense salaries and wages
Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders
Finally revenues increase it as they make net income to increase as well.
