Answer:
Milano Gallery Journal entry
Jan.1
Dr Copyright 270,000
Cr Cash 270,000
(To Record purchase of Copyright)
Dec.31
Dr Amortization Expense - Copyright 27,000
Cr Accumulated Amortization - Copyright 27,000
(To Record Copyright Amortization)
Amortization Expense of Copyright
= ($270,000 / 10years)
=$27,000
Explanation:
Since the copyright on oil painting on January 1 was 270,000 we have to debit copyright as $270,000 while credit cash as the same amount.
On Dec 31 the copyright of 270,000 also legally protects its owner for 10 more years which is why we divided 270,000 by 10 years making us to arrived at 27,000
Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
Answer:
Operation Twist is a program which is used by the FED to use the proceeds from the sale of short-term bonds to buy the long-term bonds. This is intended to put the downward pressure on the long-term yield. By buying the long-term bonds from the proceeds from short-term bills increases the demand for the bonds. Increased demand increases the price of them which makes the yield to decline as the difference between face value and the coupon or the purchase value decline.
Quantitative easing, on the other hand, is purchasing the bonds by the government which pushes up the prices of the bonds in the economy and so decreases the interest rates, a move made to make the monetary conditions easier. (C)
Answer:
desktop cost $2433.33
laptop cost $2633.33.
Explanation:
Let x = desktop price
let y = laptop price
from the information given in the question, laptop price is 200 more than the desktop price.
which mean, y = x + 200.
R_1 = Rate of interest on desktop.
R_2 = Rate of interest on laptop.
R_1 = 0.05 * x
R_2 = 0.07 * y
The total finance charges for one year is 350.
therefore
R_1 + R_2 = 350
0.05x + .07y = 350.
since y = x + 200,
.05x + .07(x+200) = 306.
.05x + .07x + 14 = 306
0.12X = 292
X = $2433.33
We know that
since y = x + 200,
therefore y = $2633.33.
desktop cost $2433.33
laptop cost $2633.33.
<u>Adjusting entry to record the Rent revenue:</u>
It is given that on November 1, the company rented space to another tenant. A check in the amount of $9,000, representing three months' rent in advance, was received from the tenant on that date. The payment was recorded with a credit to the unearned rent revenue account.
Now on December 31, we need to prepare the adjusting entry to record the Rent Revenue for the period (Nov. 1 to Dec. 31) that is two months. The Rent Revenue for two months shall be 9000*2/3 = $6,000
Hence the adjusting entry to record the Rent revenue shall be as follows:
Unearned Rent Revenue Debit $6,000
Rent Revenue Credit $6,000
(being the adjustment made for Rent Revenue earned)