Answer:
Oak Interiors
Matching each account number with its most likely account in the list:
12 - Cash
13 - Accounts Receivable
17 - Land
21 - Accounts Payable
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
41 - Fees Earned
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
Explanation:
a) Data and Classifications:
Digits and Accounts:
1—assets
12 - Cash
13 - Accounts Receivable
17 - Land
2—liabilities
21 - Accounts Payable
3—owner’s equity
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
4—revenues
41 - Fees Earned
5—expenses
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
b) The chart of accounts of Oak Interiors is where the financial accounting is organized into five major categories. These categories are called accounts. They include assets, liabilities, equity, revenue, and expenses. This implies that all business transactions that are recorded in accounts are summarized under any of these five major headings.
Answer:
The answer is "Option b".
Explanation:
In this scenario, the second option, which would be the percentage within each transaction that's also interest instead of the full amount, would've been lower if the rate of interest were lower because interest-related transactions would have been higher at lower rates and conversely, as opposed to the main refunds.
Answer:
The answer is: the following three should be used.
- net present value (NPV)
- traditional payback period (PB)
- the modified internal rate of return (MIRR)
Explanation:
First of all, the NPV of the four projects must be positive. Only NPV positive projects should be financed. If the NPV is negative, the project should be tossed away. This is like a golden rule in investment.
Now comes the "if" part. What does the company value more, a short payback period or a higher rate of return.
If the company values more a shorter payback period (usually high tech companies do this due to obsolescence), then they should choose the project with the shortest payback period.
If the company isn't that concerned about payback periods, then it should choose to finance the project with the highest modified rate of return. This means that the most profitable project should be financed.
Answer:
$2,839.02
Explanation:
The computation of zero-interest offer is shown below:-
monthly payment = $25,000 ÷ 36
= $694.44
PV of loan = PMT × [1 - (1 + i) ^-n)] ÷ i
$25,000 = PMT × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
PMT = $783.41
Now, the difference in monthly payment with and without interest is
= $783.41 - $694.44
= $88.96
PV of saving = $88.96 × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
= $2,839.02
