Answer:
The time line from minting to the first sale is:
0-192
$15 - $430,000
we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 + r)t
Solving for r :
r = (FV/PV)1/t - 1
r = ($430,000/$15)1/192 - 1
r = .0549, or 5.49%
The time line from the first sale to the second sale is:
0-35
$430,000 - $4,582,500
we can use either the FV or the PV formula. Using the FV formula, that is:
FV = PV(1 + r)t
Solving for r:
r = (FV/PV)1/t - 1
r = ($4,582,500/$430,000)1/35 - 1
r = .0699, or 6.99%
The time line from minting to the second sale is:
0-227
$15 - $4,582,500
we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 + r)t
Solving for r, we get:
r = (FV/PV)1/t - 1
r = ($4,582,500/$15)1/227 - 1
r = .0572, or 5.72%
Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
Answer:
equal to the british interest rate
Explanation:
Data provided in the question
The Interest rate on these securities = 12%
In the U.S, the interest rate = 10%
Also the spot rate for today would become suitable for the spot rate
Based on the above information, the effective yield on the british securities would be equivalent to the british interest rate and hence the same is to be considered
Answer:
20,000 units
Explanation:
Number of units in inventory at the end of quarter 3
= 3(42,500)
=127,500
Hence:
127,500- 37,500-45,000-25,000
= 20,000 units
Therefore if production strategy is used the number of units in inventory at the end of quarter 3 is 20,000 units
