Answer:
$97,000
Explanation:
The computation of capital account balance is shown below:-
capital account balance = Fair market value of Land + Equipment fair market value - Mortgage on the land
Capital account balance = $60,000 + $57,000 - $20,000
= $97,000
Therefore for computing the balance of capital account we simply added the fair market value of land and equipment fair market value and deduct the mortgage on the land and we ignore the book values as its not relevant to compute the balance of capital account.
Iven that Jacob's chocolates had an owner the ending balance in the owner's capital account is $13,700.
<h3>
What is the owner's capital account?</h3>
The equity account that appears on a company's balance sheet is called an owner's capital account. It indicates the total ownership stakes that investors hold in a company. This account holds the owners' investment in the company as well as the net income it generates, which is then decreased by any draws made to the owners.
Given,
Investment =$4,000
Net Income =$10,000
Capital withdrawal =$300
Required to find ending capital account balance =?
Ending capital account balance = $4,000 + $10,000 - $300
Ending capital account balance = $13,700
The ending balance of the owner's capital account equals the beginning balance less any withdrawals, plus contributions, plus or minus any net gain or loss for the time. The balance at the conclusion of the accounting period is determined using this formula, which is updated annually.
Thus, the ending capital account balance is 13,700.
Learn more about Capital Account here:
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Answer:
(C) A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue Indefinitely Into the future.
Explanation:
a false
the principal is never repaid on a perpetuity
d false the perpetuity is for an indefinite period of time.
definition:
the perpetuity consist in a principal which yield a return over time indefinite. this return do not include any amortization in the principal neither principal installment are done through the investment or loan life
Answer:
2,500,000 million dollars to break even
Explanation:
Answer:
1.
1 Jan 2019
Cash 2100000 Dr
Bonds Payable 2100000 Cr
2.
30 June 2019
Interest expense 73500 Dr
Cash 73500 Cr
31 Dec 2019
Interest expense 73500 Dr
Cash 73500 Cr
3.
31 Dec 2022
Bonds Payable 2100000 Dr
Cash 2100000 Cr
Explanation:
1.
The bonds are assumed to be issued at par value as the market interest rate is not given and is assumed to be the same as the interest rate on bonds of 7%. The issuance of bonds on par is recorded as a debit to the cash received against the bonds and a credit to the bonds payable account.
2.
The semi annual interest payment on bond is,
Bond interest-semi annual = 2100000 * 0.07 * 6/12 = 73500
The interest rate given is the annual interest rate of 7%. That is why we multiply it with 6/12 to get the semi annual interest.
3.
The disposal of bonds will be a reversal of the issuance entry. The bonds payable will be debited by the par value amount and the cash will be credited.
