Answer:
$455,500
Explanation:
Retained Earnings are profits that have not been distributed as dividends to shareholders. Dividends shared plus retained earning add up the total earnings by a company.
Retained earnings = profits - dividends shared
In the year revenues were $489, 000
expenses were $379,000
profits were $489,000 - $379,000 =$110,000
The dividends paid in the year were $44,500. It means the retained earnings in the year are $65,000( $110,000 - $44500)
Retained earning in the year will be beginning retained earning plus year's retained earnings.
=$390,000 + $44,500
=$455,500
Answer: When consideration is provided by one of the parties to the contract
Explanation:
Consideration must be given to make a contract legally binding.
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $14,000
To Capital owner $14,000
(being cash received)
On Jan 2
Cash $9,500
To Account service revenue $9,500
(being cash received)
On Jan 3
Account receivable $4,200
To Service revenue $4,200
(being service provided on account)
On Jan 4
Advertising expense $700
To Cash $700
(being cash paid is recorded)
On Jan 5
Cash $2,500
To Account receivable $2,500
(being cash received)
On Jan 6
Owner drawings $1,010
To cash $1,010
(being cash paid is recorded)
On jan7
Telephone expense $900
To Account payable $900
(Being telephone bill received)
On Jan 8
Account payable $900
To cash
(being cash paid is recorded)
Answer:
$1,419,327.22
Explanation:
The formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FV = Future value of the amount after 3 years = ?
M = Annuity payment = $225,000
r = Semi annual interest rate = 4% ÷ 2 = 2%, 0.02
n = number of periods the investment will be made = 3 × 2 = 6
Substituting the values into equation (1), we have:
FV = $225,000 × {[(1 + 0.02)^6 - 1] ÷ 0.02} = $1,419,327.22
Therefore, Harlan Corporation will have $1,419,327.22 at the end of three years.
