Answer:
The correct answer is Option A.
Explanation:
The concept of double entry says for every debit entry, there must be a corresponding credit entry. This is necessary for the journal entries to balance, that is, the total of the debit balance must always equal the credit balance.
The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.
Balance Sheet and income statement account include supplies, amount payable for interest and salaries.
<h3>
What is a Balance Sheet?</h3>
Balance Sheet are financial statement that shows a company's assets and liabilities.
The pair of balance sheet and income Statement account that can require adjustment include,
- Supplies of goods and services
- Unearned Revenue
- Salaries and Wages Payable
- Interest Payable
- Income Tax Payable Balance
This adjustment is dependent on the amount of increase or decrease that is made on the account.
Therefore, Balance Sheet and income statement account include supplies, amount payable for interest and salaries.
Learn more on balance sheet here,
brainly.com/question/25846533
<u>Solution and Explanation:</u>
Answer 1 The Net present value = the Present value of all the cash inflows minus the present value of all the cash outflows
= $171428.57
Answer a-2) yes, definitely the business should be started as the net present value is positive.
Answer b) Break even growth rate = the required rate – Cash flows / investment
= 3.37 percent.
Answer:
Its total cash flow at the end of year 3 is:
$792.
Explanation:
a) Data and Calculations:
Maturity of bond = 5 years
Face value = $1,000
Coupon rate = 8%
Amortization schedule for each year = 20% (100/5)
Bond’s Periodic Cash flows:
End of year 1 = $200 + $80 interest ($1,000 * 8%) = $280
End of year 2 = $200 + $64 interest ($800 * 8%) = $264
End of year 3 = $200 + $48 interest ($600 * 8%) = $248
Total cash flow at the end of year 3 = $792
Answer:
<u>(a) as either fixed or variable</u>
fixed
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
variable
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
<u>(b) as either direct or indirect</u>
direct
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
indirect
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
Explanation:
Fixed Costs are constant for any production level. Variable Costs vary directly with production.
Direct Costs are easily traced to the product manufactured. Indirect costs are not easily traced and they need to be allocated to Products manufactured.
