Answer:
$1,360.20 and $1,337.35
Explanation:
In this question, we have to used the Future value formula that is shown below:
Future value = Present value × (1 + rate)^number of years
For Staci, it would be
Present value = $950
Rate = 7.2% ÷ 12 months = 0.6%
Number of years = 5 year × 12 months = 60
So, the future value
= $950 × (1 + 0.6%)^60
= $950 × 1.431788412
= $1,360.20
For Shelli, it would be
Present value = $900
Rate = 8% ÷ 4 quarters = 2%
Number of years = 5 year × 4 quarters = 20
So, the future value
= $950 × (1 + 2%)^20
= $950 × 1.485947396
= $1,337.35
Answer:
$5,000
Explanation:
Calculation for what the Sales Tax Payable will be:
Sales Tax Payable=5% sales tax*Account balance $100,000
Sales Tax Payable=$5,000
Therefore the Sales Tax Payable will be: $5,000
Answer:
The explanation of the terms of the option contract change is below
Explanation:
a. Every call option contract will cover more shares
= 500 × 1.1
= 550
for computing the 1.1 (1 + 10%)
The strike price will be reduced for each share to
= 40 ÷ 1.1
= $36.364
b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place
c. Each contract call option will cover more shares
= 500 × 4
= 2,000
The strike price will be reduced for each share to 40 ÷ 4
= $10
A transaction is any monetary business event that impacts a business's financial statements.
<h3>The journal entries </h3>
The journal entries are as follows
On August 4
Account Receivable $610
To Sales Revenue $610
(Being the goods sold on credit basis is recorded)
On August 7
Sales Return and Allowances $60
To Accounts Receivable $60
(Being the sales allowance is recorded)
On August 12
Sales Discount $11
Cash $539
To Accounts Receivable $550
(Being the amount paid is recorded after considering the 2% discount
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