Bankruptcy is a filing meant for people who are unemployed. If you do not have any job or any source of income, possibility is that you always encounters bankruptcy or 0 balance. If you do not own a business but have any source of income, still you can survive.
Answer:
FV= $94,108.42
Explanation:
<u>First, we need to calculate the future value of the 12 annual deposits:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,500*[(1.06^12) - 1]} / 0.06
FV= $59,044.79
<u>Now, the future value at the end of the 20 years (8 years more):</u>
FV= PV*(1 + i)^n
FV= 59,044.79*(1.06^8)
FV= $94,108.42
Answer:
the interest expense os $99,317 and the depreciation expense of $82,764
Explanation:
The computation of the interest expense and the depreciation expense is given below:
Interest expense is
= Present value × effective interest rate
= $1,241,466 × 8%
= $99,317
And, the depreciation expense is
= Present value ÷ estimated life
= $1,241,466 ÷ 15 years
= $82,764
Hence, the interest expense os $99,317 and the depreciation expense of $82,764
This is the answer but the same is not provided in the given options
Answer:
a. debit Insurance Expense, $740; credit Prepaid Insurance $740
Explanation:
Insurance payment for 5 years = $3,700
On January 1, $3,700 has been recorded as prepaid expense by debiting prepaid insurance and crediting cash.
At the end of first year an insurance expense for one year is accrued and should be recorded by transferring balance of $740 from prepaid insurance account to insurance expense account
Insurance payment per year = $3,700 / 5 = $740 per year
The adjusting entry will be
Debit Insurance Expense $740
Credit Prepaid Insurance $740
Answer:
d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.
Explanation:
Opportunity cost in decision making has to do with an alternative foregone. If you make a choice of an alternative over another, therefore the extrinsic cost which is the benefit you will not have, for choosing that alternative is the opportunity cost.
Applying the above to the given scenario, it does not matter the range of increase in the college cost or room and board cost if she did not attend college; It is a general conclusion and a fact that an increase in the level of opportunity costs, it will reduce Maureen's incentive to want to go to college.
