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Ulleksa [173]
3 years ago
15

Micron Precision purchased equipment on January ​1, 2018​, for $ 40,606. Suppose Micron Precision sold the equipment for $ 30,00

0 on December 31, 2019. Accumulated Depreciation as of December ​31, 2019​, was $ 12,494. Journalize the sale of the​ equipment, assuming​ straight-line depreciation was used.
Business
1 answer:
Step2247 [10]3 years ago
3 0

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $30,000

Accumulated Depreciation - Equipment A/c $12,494

        To Equipment A/c $40,606

        To Gain on Disposal of Equipment $1,888

(Being sale of machinery is recorded and the remaining balance is credited to the Gain on Disposal of Machinery A/c)

The computation is shown below:

= $30,000 + $12,494 - $40,606

= $1,888

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The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory.
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Trevor Price bought 10-year bonds issued by Harvest Foods fi ve years ago for $936.05. Th e bonds make semiannual coupon payment
balu736 [363]

Answer: 11.14%

Explanation:

Buying price of bond = $936.05 -PV

Years investment held = n= 5*2

Rate of the Coupon = C = 8.4%

Frequency of payment = m= 2

Annual coupon = $1,000 × (0.084/2) = $42

Realized yield = i

Selling price of bond = PB = $1,048.77 = FV

Enter N= 10, PMT = $42, PV= -$936.05$, FV = 1,048.77

Answer 5.425%

The effective annual yield can be computed as:

EAY = (1+ Quoted m)^m -1

= (1+0.054)^2 - 1

=(1.054)^2- 1

=0.1114= 11.14

5 0
3 years ago
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