Answer:
31 payments
Explanation:
the present value of the first annuity is:
$1,200 / (1 + 1%)⁸ + $1,200 / (1 + 1%)¹⁶ + $1,200 / (1 + 1%)²⁴ + $1,200 / (1 + 1%)³² + $1,200 / (1 + 1%)⁴⁰ = $1,108.18 + $1,023.39 + $945.08 + $872.76 + $805.98 = $4,755.39
to determine the length of the second annuity:
PV = annuity payment x annuity factor
annuity factor = PV / annuity payment = $4,755.39 / $180 = 26.4188333
using an annuity table we must look for a present value annuity factor that corresponds to 1% interest rate and is close to 26.4188333
the annuity factor is between 30 and 31 payments. Since the final payment has to be less or equal to $180, we have to choose 31 payments.
Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
The free enterprise system of the United States is best described with the following statement:
It is a mixed economy with limited government intervention and a great deal of economic freedom.
Mixed economies are market-based economic systems in which government plays limited role. The economic freedom refers to the the individual freedom of consumers and producers.
Answer:
18.87%
Explanation:
The computation of the cost of preferred stock is shown below:
As we know that
The cost of preferred stock = Preferred dividend ÷ (issue price per share - flotation costs per share)
where,
Preferred dividend is
= 100 × 5%
= $5
Issued price per share is $28
And, the flotation cost is $1.50
So, the cost of preferred stock is
= $5 ÷ ($28 - $1.50)
= 18.87%
We simply applied the above formula
Answer:
1. Tons of pulp completed and transferred out in June:
= Beginning Work in Process + Started into production in June - Ending WIP
= 80,600 + 301,100 - 51,900
= 329,800 tons
2. Equivalent units for Materials:
= Units completed and transferred out + Ending Equivalent units
= 329,800 + (51,900 * 42%)
= 351,598 tons
Equivalent units for Labor:
= 329,800 + (51,900 * 17%)
= 338,623 tons