Answer:
Interest expense = 30,000*5%*1/12
Interest expense = 30,000*0.00416666667
Interest expense = $125.0000001
The journal entry will be:
Description Debit Credit
Interest expense $125
Notes payable $441.14
Cash $566.14
Answer:
$10,275.03
Explanation:
Years 0 1 2 3 4
Cash flow -15000 -58000 45000 45000 45000
Successful chance result (62%) -9300 -35960 27900 27900 27900
Considered cash flow -15000 -35960 27900 27900 27900
Discount factor (14%) 1 0.877 0.769 0.675 0.592
Present value -15000 (31,543.86) 21,468.14 18,831.71 16,519.04
Net present value = -$15000 - $31,543.86 + 21,468.14 + 18,831.71 + 16,519.04
Net present value = $10,275.03
Answer:
The correct answer is add $72 to the book's balance.
Explanation:
Bank reconciliation is a way of identifying discrepancies between the cash book balance (company's books) and the bank balance (balance per bank statement). The discrepancies can be as a result of erroneous posting, deposit in transit, outstanding checks, etc.
In the instance of the question, there was an erroneous posting in the cash book of $72 ($480 - $408). Instead of crediting cash book by $408, it was rather credited by $480 - meaning that the credit was overstated by $72. <em>To correct this erroneous posting, we have to add back $72 to the cash book balance.</em>
Answer:
B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
Explanation:
First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.
Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.
Answer:
A. an unadjusted credit balance at the end of the period if the write-offs during the period were less than the beginning balance.
Explanation:
