Answer:
Value of treasury note = 738000
Explanation:
Value of treasury note = Interest * PVAF(9.9%,5Years) + Maturity Value * PVF(9.9%,5year)
= 30000 * 3.800 + 1000000 * 0.624
= 738000
Answer:
The answer is c.reported on the balance sheet as a deduction from the cost of the mineral deposit.
Explanation:
Accumulated Depletion Account is the account showing the accumulated depletion expenses relating to the use/exploitation of natural resources since the beginning.
Just like Accumulated Depreciation Account, The Accumulated Depletion Account is a contra-asset account which is reported on the Balance Sheet under the Natural Resources Account; the net effect of the two account shows the net book value of Natural Resources Account.
Thus, c. reported on the balance sheet as a deduction from the cost of the mineral deposit. is the correct choice.
Answer:
A) Straight rebuy
Explanation:
Based on the information provided within the question it can be said that the purchasing process that Fred is using is called a Straight Rebuy. In a business context, this term refers to ordering supplies for the first time or as a reorder from a supplier from an approved list . This list contains suppliers that have been approved due to ease of use, good quality products, or low prices. Which in this case Grainger has all of these traits, which is why Fred prefers them.
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
Answer:
$8,120
Explanation:
<em>To calculate the proceeds, the gross proceed less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>
Gross proceed= P + (P×R×T)
P- 8,000 R- 6%, T- 10/12
Gross proceed = (8,000 + 8,000× 6%× 10/12)
= $8,400
Discount charges = Gross proceed × discount rate × time to maturity
Time to maturity = 10 - 5 = 5 months
Discount rate - 8%, Time- 5/12
Discount charges = 8400× 5/12× 8% = $280
Proceeds to be received = $8,400 - $280
= $8,120
