Calculation of balance in the income summary account prior to closing net income or loss to the owner’s capital account:
It is given that Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500.
Hence the balance in the income summary account prior to closing net income or loss to the owner’s capital account shall be as follows:
= Revenues – Expenses
= 19000-7000
= $12,000
Hence the balance in the income summary account prior to closing net income or loss to the owner’s capital account shall be $12,000
Answer:
$ 315
Explanation:
Given that
Pure premium = $300
Insurance company charges = 5%
Thus,
Amount of insurance company changes = 300 × 5%
= 300 × 0.05
= $15
Therefore,
Total premium = pure premium + insurance company charges
= 300 + 15
= $ 315
Note that: Premium is simply the amount to be paid regularly to an insurance company for an insurance policy. It is the money paid periodically by the insured to the insurer.
Studying. Never stop studying, going over your work twice, and double checking.
Answer:
the expected yield to maturity for bond C in 1 year :
1.0799³ = 1.06 x (1 + r)²
1.188 = (1 + r)²
√1.188 = √(1 + r)²
1.08999 = 1 + r
r = 0.08999 = 9%
the yield to maturity of zero-coupon bonds = (future value / present value)¹/ⁿ - 1
0.09 + 1 = ($1,000 / value in 1 year)¹/²
1.09 = ($1,000 / value in 1 year)¹/²
1.09² = $1,000 / value in 1 year
value in 1 year = $1,000 / 1.09² = $1,000 / 1.1881 = $841.68 ≈ $842
Answer:
$15,699.54
Explanation:
The computation of the account balance after 10 years from today is shown below:
= Future value of amount deposited today × (1 + interest rate)^number of years + Future value of amount deposited two years × (1 + interest rate)^number of years + Future value of amount deposited three years × (1 + interest rate)^number of years
= $1,300 × (1 + 8.1%)^10 + $3,200 × (1 + 8.1%)^8 + $4,000 × (1 + 8.1%)^7
= $2,832.70 + $5,966.99 + $6,899.85
= $15,699.54
