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3 years ago

You are considering investing in a European bank account that pays a nominal annual rate of 18%, compounded monthly.

Business

1 answer:

kumpel [21]3 years ago

6 0

Answer:

d. 38

Explanation:

This is an Annuity Due type of question. You get the hint from the statement "....$5,000 at the <u>beginning</u> of each month," In an Annuity due , the recurring payments occur at the beginning of the period i.e annually, quarterly or (monthly in this case)

So using a financial calculator on "BGN" mode

nominal rate of 18% is the I/Y. However, since it is monthly compounded, convert it to a monthly rate.

I/Y = 18%/12 = 1.5%

PMT; recurring cashflow = -5,000

FV; future value = 250,000

PV ;present value = 0 (note: in annuity, use 0 for the variable not given)

then CPT N = 37.16

Therefore, it will take approximately 38 months

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Name and discuss some positive communication skills that workers must display in the work environment.

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They must have good communication manners and be polite

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3 years ago

Read 2 more answers

On December 31, 2020, Ayayai Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Ayay

Fiesta28 [93]

Answer:

Ed Abbey Co. (Ayayai Co.)

Journal Entries:

1. December 31, 2020:

Debit Accounts receivable $296,600

Credit Consulting revenue $296,600

To record consulting services performed on account.

December 31, 2020:

Debit Notes receivable $296,600

Credit Accounts receivable $296,600

To record the acceptance of notes.

December 31, 2021:

Debit Interest receivable $35,592

Credit Interest revenue $35,592

To accrue interest on notes receivable.

December 31, 2022:

Debit Interest receivable $35,592

Credit Interest revenue $35,592

To accrue interest on notes receivable.

Debit Cash $367,784

Credit Notes receivable $296,600

Credit Interest receivable $35,592

To record the full settlement of principal and interests.

Explanation:

a) Data and Analysis:

December 31, 2020: Accounts receivable $296,600 Consulting revenue $296,600

December 31, 2020: Notes receivable $296,600 Accounts receivable $296,600

December 31, 2021:

Interest receivable $35,592 Interest revenue $35,592

December 31, 2022:

Interest receivable $35,592 Interest revenue $35,592

Cash $332,192 Notes receivable $296,600 Interest receivable $35,592

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3 years ago

In a town with exactly 1,000 residents, 60 percent of the residents make healthy choices and 40 percent of the residents consist

MrRissso [65]

Answer:

Explanation:

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3 years ago

On March 12, a company provides services on account to an individual Hospital for $9,100, terms 2/10, n/30. An individual does n

shutvik [7]

To record the transactions with the individual hospital company, the following journal entries are made:

<h3>Journal Entries:</h3>

March 12: Debit Accounts Receivable $9,100

Credit Services Revenue $9,100

To record the sale of services on terms 2/10, n/30.

March 31: Debit Cash $9,100

Credit Accounts Receivable $9,100

To record the receipt of cash in full settlement.

<h3>Transaction Analysis:</h3>

March 12: Accounts Receivable $9,100 Sales Revenue $9,100

Terms 2/10, n/30

March 31: Cash $9,100 Accounts Receivable $9,100

Thus, the journal entries for the customer do not require the recognition of the 2% sales discount since the customer could not pay within the discount window.

Learn more about recording transactions at brainly.com/question/17201601

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2 years ago

The records of Bramble Company at the end of the current year shows Accounts Receivable $74,500; Credit Sales $786,220; and Sale

Llana [10]

Answer:

(a) If Bramble uses the direct write-off method to account for uncollectible accounts and Bramble determines that Matisse’s $922 balance is uncollectible, what will Bramble record as bad debt expense?

Dr Bad Debt Expense $ 922

Cr Accounts Receivable $ 922

(b) If Allowance for Doubtful Accounts has a balance of $1,116 and Bramble concludes bad debts are expected to be 9% of accounts receivable, what will Bramble record as bad debt expense?

Dr Bad Debt Expense $ 5,589

Cr Allowance for Uncollectible Accounts $ 5,589

Explanation:

The direct write-off method is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

Dr Bad Debt Expense $ 922

Cr Accounts Receivable $ 922

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

Dr Bad Debt Expense $ 5,589

Cr Allowance for Uncollectible Accounts $ 5,589

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a credit balance in that account it's necessary to register an entry that complement the credit value and reflect A CREDIT estimated as % of account receivable., this case it's 9% of accounts receivable.

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3 years ago