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3 years ago

Problem 10-3A On January 1, 2017, Evers Company purchased the following two machines for use in its production process.

Business

1 answer:

timofeeve [1]3 years ago

7 0

Answer:

Please see the solution below:

Explanation:

Machine A:

(i) Total Machine A Cost 

Purchase Price = $37,500

Sales Tax = $3,600

Shipping Cost = $100

Insurance during shipping = $50

Installation and Testing Cost = $120

Total Machine A cost = $41,370

(ii) Depreciation

Recorded Cost = $41,370

Less: Salvage Value = $5,950

Useful Life = 5 years

Straight Line Method is used to find depreciation per yer will be:

Depreciation = $7,084

(1) The Journal Entry to record purchase of equipment (Machine A)

January 1, 2017

Dr. Equipment $41,370

Cr. Cash $41,370

(2) The Journal Entry to record annual depreciation (Machine A)

December 3, 2017

Dr. Depreciation $7,084

Cr. Accumulated Depreciation - Equipment $7,084

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On January 1, 2012, Gucci Brothers Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in

dsp73

Answer:

option (C) $1,201,300

Explanation:

Data provided in the question:

Balance in retained earnings = $492,000

Balance in Common Stock = $605,000

Net income earned = $92,000

Dividend paid = $15,200

Common stocks issued = $27,500

Now,

Common Stock

= Balance in Common Stock + Common stocks issued

= $605,000 + $27,500

= $632,500

Retained Earnings

= Balance in retained earnings + Net income earned - Dividend paid

= $492,000 + $92,000 - $15,200

= $568,800

Total Stock Holders Equity on Dec 31,2012

= Common Stock + Retained Earnings

= $632,500 + $568,800

= $1,201,300

Hence,

The answer is option (C) $1,201,300

4 0

3 years ago

Which of the following factors least constrains high performance in planning organizations?

Artemon [7]

Answer:

environment is the correct answer.

Explanation:

3 0

3 years ago

AB Builders, Inc., has 16-year bonds outstanding with a par value of $2,000 and a quoted price of 99.727. The bonds pay interest

galben [10]

Answer:

6.54%

Explanation:

Face Value = $2,000

Current Price = 2000 x 99.727% = 1994.54

YTM = 6.56%

We can find the coupon rate by a simple formula

Coupon Rate = (Interest / Face value) x 100

We need to find interest first in order to find coupon rate

YTM = Interest / Current price

6.56% x 1994.54 = Interest

130.84 = Interest

Coupon Rate = (130.84 / 2000) x 100

Coupon Rate = 6.54%

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3 years ago

You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00 % on your in

MakcuM [25]

Answer:

option B

Explanation:

In other to know how return fluctuation can be predicted with for instance, x%, predictability, one has to look at the normal distribution curve of return (average returns) to standard deviation of those returns. (check the attached file for additional details).

Hence, to be 95% sure that investment losses are less than 8% one needs to look at 95% of all returns which infact Mean return plos or minus 20. If the lower bound of this interval is less than 8% then the investment needs to be selected

check attached file for additional details

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3 years ago

What financial behaviors will typically lead to a low credit score?

Leviafan [203]

Here are some behaviors that will give you low credit score :

- If you always maxed out your credit card limits, it make you seems irresponsible
- If you never paid your credit bills on time
- If you always change your living address

but as long as you have a good history of paying your credit bills on time, your credit score will be fine

4 0

3 years ago

Read 2 more answers