Answer:
I will take $36,230.5 to pay for the education of child.
Explanation:
Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.
We will use following formula to calculate the annual payments
P = r ( PV ) / [ 1 - ( 1+ r )^-n ]
where
PV = amount of investment = $120,000
r = rate of return = 8%
n = number of period = 4 years
P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]
P = 36,230.5
December because it's between the months of October and February
Answer:
A debit to Finished-Goods Inventory
Explanation:
While recording this transaction, the journal entry is as follows
Finished goods inventory $45,000
To work in process inventory $45,000
(Being the completed units are recorded)
For recording this, we debited the finished goods inventory and credited the work in process inventory so that the correct posting could be done and the same is shown above
Answer:
Dr Merchandise Inventory Cr Cash
Explanation:
Based on the information given in a situation where purchases of merchandise are made for cash the transaction will be recorded in the journal entry by debiting Merchandise Inventory and Crediting Cash reason been that MERCHANDISE are current asset and Secondly merchandise are anticipated to be either sold out, used or turn them into cash within a period of one year, although it sometimes depends on the method of payment in which the merchandise was been paid for , which is why we have to Debit Merchandise Inventory Account and Credit Cash Account.
Hence:
Journal entry
Dr Merchandise Inventory
Cr Cash
