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Sonja [21]
3 years ago
5

Your goal is to have $15,000 in your bank account by the end of four years. If the interest rate remains constant at 4% and you

want to make annual identical deposits. If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you still wanted to reach your goal by the end of six years?
Business
1 answer:
zaharov [31]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Your goal is to have $15,000 in your bank account by the end of four years. The interest rate remains constant at 4% and you want to make annual identical deposits.

<u>End of the year:</u>

To calculate the annual deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (15,000*0.04) / [(1.04^4) - 1]= $3,532.35

<u>Beginning of the year:</u>

A= {(FV*i)/ {[(1+i)^n] - 1]} / (1+i)

A= 3,532.35/ 1.04= $3,396.49

The difference resides in the interest compounded. At the beginning of the year the interest compound for one more period.

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Zimmer, Inc. started the month of January with beginning finished goods inventory of $20,000. The cost of goods manufactured dur
Vlad1618 [11]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Beginning finished goods inventory of $20,000

The cost of goods manufactured during the month was $120,000

Ending finished goods inventory was $50,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 20,000 + 120,000 - 50,000= $90,000

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3 years ago
It is reasonable to state that one object has twice as much of the attribute property when it has a score of 60, and the other o
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Answer:

The answer is option <u>D) Ratio Scale</u>

Explanation:

Ratio scale is a type of variable measurement scale which is quantitative in nature. Ratio scale allows any researcher to compare the intervals or differences.

The most common examples of ratio scale are height, money, age, weight etc. With respect to market research, the common examples that are observed are sales, price, number of customers, market share etc.

you can use multiplication or division to "scale" ratios.

Multiplying or dividing all terms in a ratio by the same number creates a ratio with the same proportions as the original, so, to scale your ratio, multiply or divide through the ratio by the scaling factor

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3 years ago
Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2020, Lindsey Hunter took p
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Answer:

Lindsey Hunter Corporation:

a) Journal entry to record item 1:

Debit Cash Account with $225,000

Credit Common Stock with 25,000

Credit APIC Account with $200,000

To record the issue of 5,000 shares of $5 par value at $45 per share

b) Journal entry to record item 2:

Debit Land Account with $50,000

Credit Common Stock with $5,000

Credit APIC Account with $45,000

To record the issue of 1,000 shares $5 par value at $50 per share.

c) Journal entry to record item 3:

Debit Treasury Stock with $21,500

Credit Cash with $21,500

To record the purchase of 500 treasury shares at $43 per share, using the cost method.

Explanation:

a) The costs related to the issuance of the stock totaling $7,000 had been deducted before arriving at $45 issue price.  These costs include attorney, accountants, and underwriting fees.  Companies have two options to treat these costs.  One is to treat them as organization costs and expense them accordingly or apply the costs to reduce the paid-in capital.  The later is the method elected by Lindsey Hunter and it is alright.

b) Company stock can be issued for cash or other assets, as in question 2.  The treatment is similar.  This time, Land is increased instead of cash.  The most important issue is the price at which the land is appraised and not the market value of the stock.  The difference between par value and issue value is credited or debited to the APIC account.

c) The APIC account represents "Additional Paid-in Capital" also described as Share Premium Account.  It is the excess of the issue value over the par value.

d) Treasury stock is company stock that was formerly outstanding and now bought back from stockholders.  It is a reduction of the Equity.  It is created as a contra account.  There are two methods of treating treasury stock.

One method accounts for treasury stock at cost while the second method accounts for it at par.  The difference is that when it is accounted for at cost, the repurchase value is debited to the Treasury account while the credit entry goes to the Cash account.

On the other hand, when it is accounted for at par, the par value is debited to the Treasury account while the difference between par and repurchase value is debited or credited to the APIC account.  The credit entry goes to the Cash account, as always.

8 0
3 years ago
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During 2019, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:
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Answer:

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Explanation:

Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.

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Answer:

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Explanation:

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