Answer:
Yes, that sounds about right
Explanation:
Till the age of retirement, a person's mostly expenses are finished, like growing his children, educate them, get them married, etc. He is left with only few expenses like running the house or meet his personal expenses. So the Social Security and some regular savings would be enough for him to lead a respectable life in the society. Also, his children are settled enough to fulfill his expenses at this point of his life. So there is no necessity to invest in a retirement plan that pays you 80% of your regular income. Social security and savings would be enough for the person.
Answer and Explanation:
The adjusting entry is as followS:
Rent expense $2,500
To Prepaid rent $2,500
(Being rent expense is recorded)
Here the rent expense is debited as it increased the expenses and credited the prepaid rent as it decreased the assets
The rent for one month is
= $15,000 ÷ 6 months × 1 month
= $2,500
Answer:
Debit retained earnings for $15.30 million.
Explanation:
As per the data given in the question,
Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend
In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend
which means 30 million × 1% = 0.30 million shares issued
Retained earning = (0.30 million × $51)
= $15.30 million
To common stock A/c = (0.30 × $1) = $0.30 million
To capital paid in access A/c = (0.30 million × ($51-$1)) = $15.00 million
( Being stock dividend was issued at 1% )
Hence, Option (d) Debit retained earning for $15.30 million is correct.
Answer:
A. 2 years
B. 86.96
C. 16.46%
Explanation:
Payback period calculates the amount of time taken to recoup the initial investment made on a project.
The net present value substracts the present value of tax adjusted cash flows from the amount invested in the project.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
NPV = $86.96
Internal rate of return is the discount rate that equates the tax adjusted cash flows from a project to the original amount invested.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
IRR = 16.46%
Answer:
B.
compute depreciation for a full year under straight minusline depreciation and multiply it by the fraction of the year that you held the asset.
Explanation:
Under straight-line depreciation, the asset value is spread equally throughout its useful life.
To get the depreciation of a partial year, you need to calculate the depreciation a full year first.
Divide the asset value by the number of its useful years to get depreciation value for one year. To compute partial depreciation, you need to establish the fraction of the year to be depreciated. Divide the number of months by twelve to get the fraction.
To get actual depreciation, multiply this fraction by a full year depreciation.