Answer:
Cash Dr 10975
To Sales $10,000
To Sales Tax Payable $975 ($10,000 × 9.75%)
(Being the cash is recorded)
Explanation:
The journal entry is shown below;
Cash Dr 10975
To Sales $10,000
To Sales Tax Payable $975 ($10,000 × 9.75%)
(Being the cash is recorded)
For recording this we debited the cash as it increased the assets and credited the sales and sales tax payable as it also increased the revenue and liabilities
Answer:
it is refered to as profit maximization condition
Answer:
e. $ 282,000
Explanation:
To determine the assets of the company at year end, we need to find the equity at year end, this is calculated as follows:
Opening Equity $ 145,000
Net Income for the year $ 45,000
Revenues $ 210,000
Expenses $ 165,000
Equity at end of year $ 190,000
The accounting equation is
Assets = Liabilities + Stockholders' Equity
Assets = $ 92,000 + $ 190,000 $ 282,000
Answer:
NPV= $13160
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= -Io + ∑[Rt/(1+i)^t</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
In this exercise:
0= -13000
1= 6000
2= 6000
3=6000
4=6000
5=6000 + 3000 + 2500= 11500
NPV= -13000 + (6000/1.10^1) + (6000/1.10^2) + ... + (115000/1.10^5)
NPV= $13160
