Answer:
loss on fire and storms 710,000
insurance expense zero as the firm didn't acquire any
Explanation:
Notice it state <u><em>"if the company were to obtain insurance"</em></u> Which means it currently has none insurance.
If the firm had an insurance the amount of losses would be deducted from the insurance policy but there is none so we disclosure the entire loss as a result of the period.
Hence, we should recognize the entire loss on fire and storm damage of 710,000 during the year and no insurance expense.
Answer:
8.6 days
Explanation:
The formula for average collection period
= Average received turnover ratio / 365 daya
= 90 × 35 / 365
= 8.6 days
Answer and Explanation:
The journal entry are as follows
1. Interest expense $214,650
To Cash $214,650
(Being the first interest payment is recorded)
The computation is shown below
= $4,770,000 × 9% × 6 months ÷ 12 months
= $214,650
For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited
2. Cash $530,000
To Bond payable $530,000
(Being the cash sale of bond is recorded)
For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable
Answer:
Trend analysis is analysisof dollar changes and percentage changes over several years.
Explanation:
A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future.
Answer:
B. $6,448,519
Explanation:
The computation of the present value of this growing annuity is given below:
PVA = [Cash flow at year 1 ÷ (interest rate - growth rate)] × {1 - [(1 + growth rate) ÷ (1 + interest rate)^number of years}
= [$675,000 ÷ (0.18 - 0.13)] × [1 - (1.13 ÷ 1.18)^15]
= $6,448,519
Hence, the correct option is b.