Answer: The assets that are classified as plant assets on the company's balance sheet include :
(1) the showroom building, a separate building used to service customer cars, and various parking lots.
Plant asset is known as the long-term fixed asset that is used to bring forth or sell commodities and services for the institution. These assets are tangible and are expected to produce economic benefits for the organization.
Answer:
Interest payment = Interest rate per period × par value
5.5 percent coupon corporate bond (paid semi-annually)
Interest payment = 1/2 × 0.055 × 1000 = $27.5
6.45 percent coupon Treasury note (Treasury makes semi-annual coupons)
Interest payment = 1/2 × 0.0645 × 1000 = $32.25
Zero coupon bond:
Interest = 0 × 1000 = $0
Answer:
$313,288.16
Explanation:
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 to 7 = $10,000
I = 10%
Present value = $313,288.16
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A) Prepare the revenues section of the income statement.
Sales Revenue = $743,800
Sales Discounts = ($11,170)
Sales Returns and Allowances = <u>($22,820)</u>
Net Sales = $709,810
B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.
(1) Dr. Cr.
Revenue Expense $743,800
Income Summary $743,800
(2) Dr. Cr.
Income Summary $33,990
Sales Discounts $11,170
Sales Returns and Allowances $22,820
