Answer:
From all indications,the two rents received have been posted wrongly, I want to believe that you are required to post the adjusting entries,hence my answer below:
The first $9000 was posted to deferred revenue,whereas only two months should have been
First rent:
DR Deferred revenue $3000
CR Revenue $3000
Second Rent
DR Revenue $6000
CR Deferred revenue $6000
Explanation:
The first $9000 was posted to deferred revenue,whereas only two months should have been deferred and December rent recognized as rent.
As far as the second rent is concerned only one month has been earned,as a result the revenue should be credited with just $3000 for December.
This then mean that revenue from the second property has been overstated in December by $6000,this necessitated by adjustment above.
Answer:
PV= $7,721.73
Explanation:
Giving the following information:
Your deal with her is that you will pay her $1,000 per year for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%.
To calculate the present value we need to use the following formula:
NPV= ∑[Cf/(1+i)^n]
For example:
Year 4= 1,000/1.05^4 822.70
Year 8= 1,000/1.05^8= 676.84
NPV= $7,721.73
Answer:The Company needs to sell 1.11 million shares.
Explanation:
Since 8% shares are already taken b underwriters, the Compay needs to sell 92% of shares. So 92% of total amount (65.4 million) is $ 60.168 million. We will divide the amount by price per share of $54 to get amount of shares needed to be sold. So after dividing is $ 60.168 million by $54, we get 1.11 million shares which is the answere.
Answer:
The most accurate estimate of lost profits is
3) a weighted average that gives twice the weight to the last six months as to the first six months
Explanation:
In this case, after Mr James' suggestions, I consider several options as an estimate of lost profits, which are:
1) The full year: In this case the the entire data for the year would be considered for estimation.
2) The last six months: Here, half of the year's data would be considered for estimation.
3) Weighted average that gives twice the weight to the last six months as to the first six months: This means that the data for the most recent months should be given more weight more than the first six months. It means that the most recent data would be more accurate than that of the first 6months, and the most recent data should be trusted more than the data of the previous 6 months.
Here, a ratio of 2:1 is used to assign weight to the last six months and first six months respectively.
4) Some other weighted average: This is similar to option 3 not same ratio is used, but some other weights could be assigned depending on other factors.
Therefore, the weighted average gives the most accurate estimate of lost profits as in option (3) because it considers the most recent data.
Answer:
<u>A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.</u>
Explanation:
Defining a company's vision and mission is extremely important for its strategic planning, as its premises will serve as a guide to assist managers in the decision-making process.
The mission corresponds to the company's raison d'être, the reason for its existence and what its purpose is. The vision corresponds to the aspirations, objectives and goals that the company intends to achieve in the future. So it is correct to say that A vision affirms what a company wants to accomplish; a mission states how a company plans to realize that vision.
