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2 years ago

10

Shauntae is 75 years old. he purchased a single life annuity contract that will pay him $3,000 per month for 10 years. the expec

ted return under the contract is:

1 answer:

bixtya [17]2 years ago

3 0

The answer is, 3,000x 12= 36,000
36,000 x 10 years = 360,000

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If a company has advance ticket sales totaling 2,000,000 for the uncomping football season. the reciept of cash would be journal

Andru [333]

If a company has advance ticket sales totaling 2,000,000 for the uncomping football season. the receipt of cash would be journalized as Debit Cash, credit Unearned Revenue.

A receipt is documentation that something was purchased and paid for. If you plan to return something you purchased, you usually need it. On business trips, people keep track of their receipts so that their employers can reimburse them for any expenses they incurred. A less common usage of the word receipt is as a verb, as in "The clerk receipted my purchases," which means that the clerk provided written evidence that the things were paid for. Receipts are given out in business-to-business transactions as well as stock market transactions, in addition to the receipts that customers normally obtain from vendors and service providers. Both transactions on the stock market and business-to-business exchanges issue receipts. Furthermore, receipts are required as verification of some expenses for tax purposes.

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1 year ago

Prepare the issuer's journal entry for each of the following separate transactions.

jeka57 [31]

Answer:

a.

March 1

Debit : Cash $318,500

Credit : Common Stock $198,000

Credit : Excess of Par $120,500

<em>Being Issue of Par value Shares for $318,500 cash</em>

b.

April 1

Debit : Cash $84,000

Credit : Common Stock $84,000

<em>Being Issue of no Par value shares for $84,000 cash</em>

c.

April 6

Debit : Inventory $53,000

Debit : Note Receivable $103,000

Credit : Common Stock $68,000

Credit : Excess of Par $88,000

<em>Being Issue of Par value Shares for Inventory and Note Receivable</em>

Explanation:

Note: We are instructed to prepare journals from the issuer`s point of view and this needs to be followed.

When shares are issued, the Common Stock increases :

a. For par value Common Stocks, any price paid in excess of par value is accounted in Excess of Par Reserve.

b. For no par value shares, there is no Excess of Par Reserve, we simply record the increase in Common Stock at the price paid for.

3 0

3 years ago

Skidmore Music Company had the following transactions in March:

finlep [7]

Answer: Check attachment

Explanation:

A cash basis income statement is simply referred to as an income statement which contains revenues and expenditures for the company whereby cash has either being received or paid by the company.

For accrual basis income statement, revenue and expenditures are recorded when they're either earned or made.

Check the attachment for more analysis.

5 0

3 years ago

On January 1, 2017, Culver Company issued 10-year, $2,140,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into

Dvinal [7]

Answer:

a) diluted earnings per share = 0

Explanation:

Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.

Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.

So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.

If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:

The formula for calculating DEPS is as follows;

DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.

Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.

Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).

Now Lets calculate DEPS as follows;

DEPS = ($296000+$128400) ÷ 91000+29960

DEPS =$424400÷120960

DEPS = $3.5

5 0

3 years ago

Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an

Anarel [89]

Answer: product differentiation

Explanation:

From the question, we are informed that Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs.

This is an example of a barrier to entry which is known as product differentiation. Poduct differentiation is when a company makes its product different from other similar products so that the product will be more attractive and unique from others.

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2 years ago