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Morgarella [4.7K]
4 years ago
14

The assets of Prosian Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million.

Based on the accounting equation, Prosian Italia's owners' equity is equal to _____.
$580 million
$72,000 million
$2 million
$220 million
Business
1 answer:
Kobotan [32]4 years ago
4 0

Answer:

$220 million

Explanation:

According to given information in question:

Assets = $400 million

Liabilities = $180 million

Accounting Equation:

Assets = Equity + Liabilities

$400 million = Equity + $180 million

Equity = $400 million - $180 million

Equity = $220 million

Based on the accounting equation, Prosian Italia's owners' equity is equal to $220 million.

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Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk
Eduardwww [97]

Answer:

A. $840,000

B. Discount

C. Annual interest expense on these bonds will be more than  the amount of interest paid each year.

Explanation:

Data

Bonds issued = $21,000,000

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Market Interest rate = 4.46%

Requirement A: Annual interest amount

Interest amount = Bonds issued x coupon rate

Interest amount = $21,000,000 x 4.0%

Interest amount = $840,000

Requirement B: Whether it is Premium or Discount?

Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.

Requirement C:

The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,

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3 years ago
Culinary Enterprises manufactures cookware sets and sells the sets to department stores. Culinary expects to sell 2 comma 600 co
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Answer:

The Total Budgeted Sales of May is $944,000

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Budgeted sales are those sales which a business estimated in a particular period of time. While budgeting the future value company calculated the sales cost and other expenses to minimize the uncertainty and prepare for the future.

As per given data

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4 0
3 years ago
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Answer:

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