Answer:
b.
Explanation:
The company sold 6 advertising spaces that would run from July to December for $400 each.
Total amount received for selling 6 advertising spaces = 6×$400
Total amount received for selling 6 advertising spaces = $2,400
The advertising spaces will run for 6 months i.e., July to December.
So, adjusting entry on 31st July would record the revenue earned for 1 month only.
Total revenue = $2,400
No. of months = 6
Revenue for 1 month = $2,400/6
Revenue for 1 month = $600
Thus, journal entry on receipt of cash as well as adjusting journal entry has been shown below:
A credit to a liability account would happen upon the sale of a product because the Merchandise that was sold is subject to state sales tax.
<h3>What do credit do to liabilities?</h3>
In accounting, a credit is always been positioned on the right side of an entry and it effect is that it increases liability, revenue or equity accounts and decreases asset or expense accounts.
Because the state sales tax is seen as expenses, then, a credit to a liability account would happen upon the sale of a product because the Merchandise that was sold is subject to state sales tax.
Read more about liability account
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Answer:
a. Sale of Common Stock.
Classification: Financing activity
b. Sale of Land
Classification: Investing activity
c. Purchase of Treasury Stock
Classification: Financing activity
d. Merchandise Sales
Classification: Operating activity
e. Issuance of a long-term note payable
Classification: Financing activity
f. Purchase of merchandise
Classification: Operating activity
g. Repayment of note payable
Classification:
Financing activity
h. Employee salaries
Classification: Operating activity
i. Sale of equipment at a gain.
Classification: Investing activity
j. Issuance of bonds
Classification: Operating activity
Answer:
13%
Explanation:
To solve for the IRR we first need the formula
where NPV is the net present value, 
is the cash flow in period t, and r is the IRR (internal rate of return)
Solving this polynomial can be quite cumbersome. Thankfully excel has a built in function that we can take advantage of call IRR
As shown in the screen shot we write the cash flow, with the first one with the negative sign. Then we call the IRR function selecting the cells with our Cash Flow values and excel will return the IRR. In this case is 13%
Answer:
$1,666,666.67
Explanation:
This is a time value of money(TVM) question specifically, a perpetuity.
Use the formula for present value of perpetuity to solve it. It is as follows;
PV or perpetuity = Recurring cashflow / interest rate
PV = CF / r
Recurring annual cashflow ; CF = 100,000
rate; r = 6% or 0.06 as a decimal
PV = 100,000 / 0.06
PV = 1,666,666.667
Therefore, your parents will deposit $1,666,666.67 today
