At the end of its first year, the trial balance of Crane Company shows Equipment $22,400 and zero balances in Accumulated Deprec
iation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3,400. Indicate the balance sheet presentation of the equipment at December 31.
1 answer:
Answer:
The balance sheet presentation is shown below:
Explanation:
Balance Sheet is one of the most vital financial statement, which is prepared at the year end or period end. In this statement, the company states the total assets as well as the liabilities and shareholders equity of the whole period.
This statement is prepared in order to know the financial position of the company at the fiscal or accounting period or year.
So, the Equipment at December 31, would amount to $19,000
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A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800 is false because the real pay at closing is $1,600.
<h3>What is mortgage?</h3>A mortgage is a loan that is used to buy or to maintain a land, home, or other sort of real estate.
The borrower checks to refund the lender over a period of time, usually in an ordination of regular installments divided into principal and interest. The property is used as security for the loan.
According to the given information,
Mortgage Amount = $80,000
Points = 2
Let the 2 points is taken as a percentage:
Point 1 = 1%, and
Point 2 = 2%
Now, as we know that in the loan process, the amount of point is cyphered at the closing. Then, the closing cost is commuted as:
Therefore, the given problem is false, that the borrower have to pay $800, he would have to pay only $1,600.
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