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3 years ago

This information relates to Monty Real Estate Agency for the month of October, 2022.

Business

1 answer:

Darina [25.2K]3 years ago

7 0

Answer:

Oct 1 Cash $37000 Dr

Common Stock $37000 Cr

Oct 3 Equipment Account $4400 Dr

Accounts Payable $4400 Cr

Oct 6 Accounts Receivable $10500 Dr

Commission Revenue $10500 Cr

Oct 10 Cash $190 Dr

Commission Revenue $190 Cr

Oct 27 Accounts Payable $880 Dr

Cash $880 Cr

Oct 30 Salary Expense $3000 Dr

Cash $3000 Cr

Explanation:

The event on October 2 of hiring an administravtive assistant is not a financial event so it will not be recoreded and journalized. All the other transactions are recorded and journalized.

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3 years ago

Jane is a very intelligent graduate of FIN 3601. As such, she knows she should will start contributing into her company's retire

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Answer:

The amount that Jane will have in her retirement account 30 years from now is $943,650.37.

Explanation:

Jane’s monthly savings = $250

Amount added monthly by Jane’s firm = Jane’s monthly savings * Amount added by Jane’s firm for every dollar = $250 * $0.50 = $125

Total monthly savings to Jane’s 401(k) = Jane’s monthly savings + Amount added monthly by Jane’s firm = $250 + 125 = $375

Since Jane decides to allocate $250 at the end of each month into her 401(k), this implies the relevant formula to use to calculate the amount Jane will have in her retirement account 30 years from now is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount that Jane will have in her retirement account 30 years from now = ?

M = Total monthly savings to Jane’s 401(k) = $375

r = Average monthly interest rate = Average annual interest rate / 12 = 10.50% / 12 = 0.1050 / 12 = 0.00875

n = number of months = number of years * number of months in a year = 30 * 12 = 360

Substituting the values into equation (1), we have:

FV = $375 * (((1 +0.00875r)^360 - 1) / 0.00875) = $375 * 2,516.40 = $943,650.37

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3 years ago

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

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= ($232,950).

Explanation:

a) Data and Calculations:

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Working capital required = $100,000

Annual net cash receipts = $120,000

Cost to construct new roads in three years = $40,000

Salvage value of equipment in four years = $65,000

Estimated useful life of mine = 4 years

Working capital released in four years = $100,000

Required rate of return = 20%

Cash Flows PV factor Present Value

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Working capital required 100,000 1 -100,000

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Working capital released in 4 years 100,000 0.482 48,200

Net present value ($232,950)

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3 years ago

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