This Question: 1 pt

The payment represents rent for the years 2022 and 2023, the period covered by the lease. Kraft Company is a cash basis taxpayer

anygoal [31]

Answer:

Don't know the answer but gl

Explanation:

just neeed to use the app for answer hope you have a good day ;]

5 0

3 years ago

6. The money multiplier formula shows effects of

horrorfan [7]

Answer: a cash deposit into banking system on the money supply

The money multiplier refers to the ratio of deposits to the reserves in a certain banking system. The money multiplier formula is caused by a cash deposit in a bank on the money supply.

7 0

3 years ago

Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three

Ainat [17]

Answer:

-5.14 for sam

-18.01% for dave

Explanation:

We first calculate for Sam

R = 7.3%

We have 2% increase

= 9.3%

We calculate for present value of coupon and present value at maturity using the formula for present value in the attachment

To get C

1000 x 0.073/2

= 36.5

time= 3 years x 2 times payment = 6

Ytm = rate = 9.3%/2 = 0.0465

Putting values into the formula

36.5[1-(1+0.0465)^-6/0.0465]

= 36.5(1-0.7613/0.0465)

36.5(0.2385/0.0465)

= 36.5 x 5.129

Present value of coupon = 187.20

We solve for maturity

M = 1000

T = 6 months

R = 0.0465

1000/(1+0.0465)⁶

= 1000/1.3135

Present value = 761.32

We add up the value of present value at maturity and that at coupon

761.32 + 187.20

= $948.52

Change in % = 948.52/1000 - 1

= -0.05148

= -5.14 for sam

We calculate for Dave

He has 20 years and payment is two times yearly

= 20x2 = 40

36.5 [1-(1+0.0465)^-40/0.0465]

Present value = 36.5 x 18.014

= 657.511

At maturity,

Present value = 1000/(1+0.0465)⁴⁰

= 1000/6.1598

= 162.34

We add up these present values

= 657.511+162.34 = $819.851

Change = 819.851/1000 -1

= -0.1801

= -18.01%

4 0

3 years ago

Your company obtains a short term loan on September 1st, 2019 to cover costs to purchase inventory. The loan is for $50,000, the

artcher [175]

Answer:

a. Journal Entry on September 1st, 2019:

Dr: Cash/ Bank $50,000

Cr: Short Term Loan $50,000

b. Journal Entry to accrue interest on December 31st, 2019 is:

Dr: Interest Expense $1,333.33

Cr: Accrues Interest Expense $1,333.33

c. Interest Expense on March 31st, 2020 is :

$1,000

d. The Total cash company will pay back on March 31st 2020:

52,333.33 (50,000 principal + 2,333.33 interest)

Explanation:

b. Annual Interest is $50,000×8% = $4,000 per annum.

The annual interest rate is prorated for 4 months (Sept 2019 -Dec 2019)

$4,000 *4/12 = $1,333.33

c. Interest expense for next fiscal year up till March 2020 is calculated by prorating annual interest expense for 3 months (Jan 2020- Mar 2020)

$4,000×3/12 = $1,000

8 0

3 years ago

The Racquet Store (RS) sells franchise agreements in which it charges an up-front fee of $50,000 for assistance in setting up a

andre [41]

Answer: A- Revenue under the installment sales method, as soon as it has assisted Steffi in setting up the store.

Explanation: The installment sales method is a method of accounting accepted under the US Gaap. It is a method were revenue is recorded in instalments and the cost of sales and gross profit recognised upon the collection of the installment revenue.

It is a method of accounting used mainly by construction companies whose revenue are not received once but in installments.

7 0

3 years ago