Answer:
b. Debit Equipment $85,000; Credit Cash $85,000.
Explanation:
Provided information,
Financial year will end on 30 June each year.
The computer equipment is purchased on 1 July
Cost of equipment = $85,000
Note: At the time of purchase as the equipment is long term, it will be accounted as fixed asset and is a capital expenditure, not a revenue expense to be charged in books of account.
Therefore, entry for recording the purchase of computer equipment shall be:
Equipment A/c Dr. $85,000
To Cash A/c $85,000
(Recording purchase of equipment in exchange of cash)
Answer:
The amount to record as the cost of this long-term investment in bonds is $771,500
Explanation:
The computation of long term investment in bonds is shown below:
= (Face value × cost of bond) + brokerage cost
= ($750,000 ×1.01) + $14,000
= $757,500 + $14,000
= $771,500
The accrued interest should not be included in the computation of long term investment because it is not a received cost, it is earned but actually it is not received. Hence, this accrued interest would not be considered in the computation part.
Thus, The amount to record as the cost of this long-term investment in bonds is $771,500
Answer:
c. $360 increase in excess reserves and a $40 increase in required reserves
Explanation:
Required reserves is the amount of reserves that is required by the Central bank that banks should keep.
Required reserve = reserve ratio × deposit
= 0.1 × $400 = $40
Excess reserve is the amount of reserves kept in excess of the required reserves.
Excess reserve = Deposit - Required reserve = $400 - $40 = $360
I hope my answer helps you
Answer:
$ 75131
Explanation:
Given:
Amount inherited = $ 300000
Present amount of annuity = $ 300000
Interest rate, i = 8% = 0.08
number of years, n = 5
Now,
the formula for the present amount of annuity is given as:
Present amount of annuity =
where,
P is the periodic payment
n is the number of years
now, on substituting the values, we get
$ 300000 =
or
$ 300000 = P × 3.993
or
P = $ 75131.48 ≈ $ 75131
hence, the amount he can withdraw is $ 75131
Answer:
a. group
Explanation:
Group -
It refers to the collection of two or more freely interacting people , who have the same goal and norm and have a distinct identity , is refer to as a group .
These people work and interaction though very peacefully and happily.
Hence , from the given scenario of the question ,
The correct term is group.