Answer:
Inventory $200,000
Cash $50,000
Notes payable $150,000
Explanation:
Data provided in the question:
Cost of the inventory purchased = $200,000
Amount paid in cash = one-fourth
= one-fourth of $200,000
= $50,000
For the remaining balance signed a note i.e = $200,000 - $50,000
= $150,000
Now,
This transaction will be recorded as:
Inventory $200,000
Cash $50,000
Notes payable $150,000
Answer: $10,710
Explanation: The FICA tax (Federal Insurance Contribution Act) an employee payroll tax that funds Social Security benefits 6.2% and Medicare health insurance 1.45%.
Company A
Earnings $50,000
r = 6.2%
Social security = $50,000 × 0.062
= $3100
Medicare = $50,000 × 0.0145
= $725
Company B
Earnings = $90,000
Social security = $90,000 × 0.062
= $5580
Medicare = $90,000 × 0.0145
= $1305
Brooke FICA tax obligations of the year.
= $5580 + $1305 + $3100 + $725
= $10,710
Answer:
$20,450
Explanation:
With regard to the above, the adjusted cash balance would be computer as;
= Bank balance + deposits in transit - outstanding checks
= $19,400 + $6,550 - $5,500
= $20,450
or
= Bank balance - service fees - NSF checks
= $21,525 - $70 - $1,005
= $20,450
Answer:
False, we conclude that $1 in one year from now is worth more than that of today.
Explanation:
The time value of money (TVM) is concept that suggests money available at present time is worth more than identical sum in future due to potential earning capacity.
This core principle in finance holds that the provided money can earn interest , and any amount of money is worth more the sooner it is received.
Also future money is not affected by inflation, only present money is.
Hence we conclude that $1 in one year from now is worth more than that of today.
Answer:
b. $288,000
Explanation:
Data provided
Beginning retained earning = $256,000
Net income = $44,000
Dividend = $12,000
The computation of retained earnings balance is shown below:-
Retained earnings balance = Beginning retained earning + Net income - Dividend
= $256,000 + $44,000 - $12,000
= $288,000
Therefore for computing the retained earning balance we simply applied the above formula.
