When two knowledgeable people acting independently each produce the same information, this information is said to be?

The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December 31 Account No. Debi

muminat

Answer:

Net Income = $2,980

Statement of owner's equity = $15,280

Total Assets = $19,050

Total Liabilities = $3,770

Explanation:

Requirement A) Income Statement

Nadia Company

Income Statement

For the Year Ended December 31, 20X9

Revenues: $ $

Fees Earned 10,930

Expenses:

Wages expense 2,450

Rent expense 1,900

Utilities expense 1,475

Depreciation Expense 1,150

Miscellaneous Expense 975

Total Expenses (7,950)

Net Income 2,980

Nadia company's total revenue exceeds the total expenses, therefore, the company earns a net income of $2,980.

Requirement B) Statement of owner's equity

Nadia Company

Statement of Owner's Equity

For the Year Ended December 31, 20X9

Particulars $

Beginning Capital 10,000

Add: Additional investment (Capital) 3,000

Add: Net income for the year 2,980

15,980

Less: Drawings 700

Capital, December 31 (Ending Capital) 15,280

The amount of $15,280 is the total owner's equity for the company. The company will this amount in the balance sheet as well.

Requirement C) Balance Sheet

Nadia Company

Balance Sheet

As At December 31, 20X9

Particulars $ $

Assets

Current Assets

Cash 5,130

Accounts Receivable 3,300

Prepaid Expenses 420

Total Current Assets 8,850

Property, Plant, and Equipment

Equipment 12,400

Less: Accumulated Depreciation (2,200)

Total Property, Plant, and Equipment 10,200

Total Assets 19,050

Liabilities & Owner's Equity

Liabilities

Current Liabilities

Accounts Payable 700

Notes Payable (Short-term) 3,070

Total Liabilities 3,770

Owner's Equity

Owner's Equity (From requirement B) 15,280

Total liabilities and owner's equity 19,050

Therefore, Total Assets = Total Liabilities + Owner's Equity

5 0

3 years ago

Coney Island Entertainment issues $1,300,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and Dec

Ganezh [65]

Answer:

1) The market interest rate is 5% and the bonds issue at face amount.

Dr Cash 1,300,000

Cr Bonds payable 1,300,000

Year Interest payment Book value of bonds

June/1 $32,500 $1,300,000

Dec/1 $32,500 $1,300,000

June/2 $32,500 $1,300,000

2) The market interest rate is 6% and the bonds issue at a discount.

price of bonds:

PV of face value = $1,300,000 / (1 + 3%)³⁰ = $535,582.79

PV of coupons = $32,500 x 19.600 (PV annuity factor, 3%, 30 periods) = $637,000

market price = $1,172,582.79

Dr Cash 1,172,582.79

Dr Discount on bonds payable 127,417.21

Cr Bonds payable 1,300,000

discount amortization per coupon payment = $127,417.21 / 30 = $4,247.24

Year Cash paid Interest Amortization Bond Book

expense bond discount discount value

June/1 $32,500 $36,747.24 $4,247.24 $123,169.97 $1,176,830.03

Dec/1 $32,500 $36,747.24 $4,247.24 $118,922.73 $1,181,077.27

June/2 $32,500 $36,747.24 $4,247.24 $114,675.49 $1,185,324.51

3. The market interest rate is 4% and the bonds issue at a premium.

price of bonds:

PV of face value = $1,300,000 / (1 + 2%)³⁰ = $717,692.16

PV of coupons = $32,500 x 22.396 (PV annuity factor, 2%, 30 periods) = $727,870

market price = $1,445,562.16

Dr Cash 1,445,562.16

Cr Bonds payable 1,300,000

Cr Premium on bonds payable 145,562.16

discount amortization per coupon payment = $145,562.16 / 30 = $4,852.07

Year Cash paid Interest Amortization Bond Book

expense bond discount premium value

June/1 $32,500 $27,647.93 $4,852.07 $140,710.09 $1,440,710.09

Dec/1 $32,500 $27,647.93 $4,852.07 $135,858.02 $1,435,858.02

June/2 $32,500 $27,647.93 $4,852.07 $131,005.95 $1,431,005.95

6 0

3 years ago

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supp

Hunter-Best [27]

A choose Akron because 75 can b. Between 60 and 80

8 0

3 years ago

Read 2 more answers

As the owner of a party store, you have decided to lower the price for all balloons this month. What do you expect to happen?

Ulleksa [173]

Answer:

Quantity demanded for balloons will increase.

Explanation:

According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.

This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.

Therefore,

Fall in the price of balloons will lead to increase the quantity demanded for balloons.

3 0

3 years ago

With a(n) _______, the full amount of the loan is received when the contract is signed, but only the interest is paid over the l

Vikentia [17]

Answer: Balloon Loan

A balloon loan is a type of loan where the final payment is usually much larger than the payment preceding it.

In a balloon loan, the entire loan amount is given to the borrower as soon as the loan is approved and the contract is signed.

The interest falls due and is paid during the life of the loan.

The principal however, is paid as a balloon payment on the final day of the life of the loan.

6 0

3 years ago