Many politicians have degrees in business or law. true or false?

T-account: Accounts ReceivableBeg. Bal. 188,400 105,800 18,090 63,990 5,490 14,790 19,290 Partial list of account balances at th

olganol [36]

Answer:

thats a hard one

Explanation:

7 0

3 years ago

Lee Airlines plans to issue 12-year bonds with a par value of $1,000 that will pay $70 every six months. The bonds have a market

Zielflug [23.3K]

Answer:

After tax cost of debt = 10.43%

Explanation:

Market price = 960

Flotation cost = 0.07

Market price after Flotation cost = 960*(1-0.07) = 960*0.93 = 892.8

Face value = 1,000

Interest payment (PMT) = 1000*0.07 = 70

Term of payment = 12*2 = 24

Cost of debt before tax = Rate(24, 70, -892.8, 1000, 0)*2

Cost of debt before tax = 0.080198497*2

Cost of debt before tax = 0.160396994

Cost of debt before tax = 16.04%

Tax rate = 35%

After tax cost of debt = 16.04% * (1-35%)

After tax cost of debt = 0.1604*0.65

After tax cost of debt = 0.10426

After tax cost of debt = 10.43%

6 0

3 years ago

Depreciation Methods A delivery truck costing $22,000 is expected to have a $2,000 salvage value at the end of its useful life o

Artist 52 [7]

Answer:

a. $5,000

b. $5,500

c. $6,000

Explanation:

The computation of the depreciation expense for the second year is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($22,000 - $2,000) ÷ (4 years)

= ($20,000) ÷ (4 years)

= $5,000

In this method, the depreciation is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $22,000, so the depreciation is $11,000 after applying the 50% depreciation rate

And, in year 2, the $11,000 × 50% = $5,500

(c) Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)

= ($22,000 - $2,000) ÷ ($100,000 miles)

= ($20,000) ÷ ($100,000 miles)

= $0.2 per miles

Now for the second year, it would be

= Production units in second year × depreciation per miles

= 30,000 miles × $0.2

= $6,000

4 0

4 years ago

Gerardi Supply started the year with total assets of $210,000 and total liabilities of $85,000. During the year, the business re

ivanzaharov [21]

Answer:

$155.000

Explanation:

According with the information the person has first calculate the Equity. According with the accounting equation the Assets are equal to Liabilities plus the Equity. The first step is found the equity of the next way:

Equity year 1= Assets- Liabilities

Equity year 1= $210,000 - $85,000

Equity year 1= $125.000

Equity year 1= 125.000- 50.000 (dividends) = $75.000

Nevertheless, the calculation of the net income is measure independent of the operations in the balance sheet.

After you need to calculate the net income:

Net income= Revenues- Expenses

Net income= $275,000- $120,000

Net income= $155.000

As you can see the operations in the income statement only affects are affects by the revenue and the expenses.

7 0

3 years ago

Provide the summary journal entry which shows the cash flow for each of the following for Mike Roe Computers during the reportin

IrinaK [193]

Answer:

a. DR Cash CR Customer

b. DR Suppliers (Liability) CR Cash

c. DR Employees (Salaries) CR Cash

d. DR Interest Expense CR Cash

e. DR Insurance Expense CR Cash

f. DR Income Taxes CR Cash

Explanation:

This is an accounting question that attempts to test your understanding of Journal entries.

The logic behind journal entries rests on the understanding of double entry principle in accounting that states that for every debit entry, there must be a corresponding credit entry.

Furthermore, you credit the giver and debit the receiver for any transaction.

There is a simpler way to understand this though.

I will make a little assumption that you understand what assets, expenses, losses and liabilities are;

Based on this assumption;

whenever assets, expenses and losses go up or increase, you Debit (DR) them but when they go down or reduce, you Credit (CR) them

Also, whenever Capital, incomes, and Liabilities go up or increase, you Credit (CR) them and whenever they go down or decrease, you Debit (DR) them.

Please feel free to ask me further questions on this, I am sure the little explanation I have given above will help you with any journal entry question.

Thank you.

3 0

3 years ago