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Ymorist [56]
3 years ago
8

Of course, these engineering controls will cost $33,000 dollars. This is compared to a continuing hearing conservation program t

o include annual audiograms, or hearing tests, annual training, and providing noise protection for the welding department which is estimated to cost $9,000 per year. This amount would be saved each year if the engineering controls are installed. If the company takes out a loan for $33,000 at 5% interest, what will the payback period be for the loan? Please consult your unit lesson for the necessary formulas. What would be your recommendation to the employer with respect to the options available? Please show your work. Make sure you justify your reasoning and that you consider the hierarchy of controls in your discussion.
Business
1 answer:
ra1l [238]3 years ago
8 0

Answer:

Explanation:

As the loan amount is gradually written off by the cost saved , the interest saved is also considered

P= ( 1+ R)^n

F = 9,000

R = 5% , 0.05

Loan amount - $33,000

N=Number of years

Year 1 = 9000( 1+0.05)^-1= 8,571.43

Year 2 =9000(1+0.05)^-2 = 8,163.27=  16.734.70

Year 3= 9000(1+0.05)^-3= 7,774.54 = 24,509.24

Year 4 = 9,000(1+0.05)^-4= 7,404.32= 31,913.56

Year 5 = 9,000 (1+0.05)^-5= 7,051.74= 38,965.3

Payback period is 5 years.

The company has the option of $33,000 for a control that will be repaid over five years period or a continuing hearing conservation program that would have paid ($9,000*5) $45,000 for the five years.

Comparing the two option , The Engineering control is a cheaper option and even with benefits that will outlast the continuing hearing program.

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Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acqui
yuradex [85]

Answer:

Better Corp. (BC)

a. Accounting Equation

Assets                =       Liabilities       +               Equity

1. Cash $7,000                                                   Common stock $7,000

2. Cash $12,000        Bank loan payable $12,000

3. Cash $47,000                                                Service Revenue $47,000

4. Cash ($30,000)                                              Op. expenses ($30,000)

5. Cash ($8,000)                                                Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

Assets $28,000   =  Liabilities $12,000  + Equity $16,000

b. December 31, Year 1 Balances:

Total assets = $28,000

Total liabilities = $12,000

Stockholders' equity = $16,000

Balance Sheet as of December 31, Year 1

Assets:

Cash                     $8,000

Land                  $20,000

Total assets      $28,000

Liabilities:

Bank loan         $12,000

Equity:

Common stock $7,000

R/Earnings          9,000

Total equity    $16,000

Liabilities and

 Equity          $28,000      

c. January 1, Year 2 Balances:

Total assets = $28,000

Total liabilities = $12,000

Total equity = $16,000

d. The Land will be shown on the December 31, Year balance sheet at $20,000.  The reason is that this is the acquisition cost and the land is not held for trading (no information provided).

Explanation:

a) Data and Analysis based on the Accounting Equation:

1. Cash $7,000 Common stock $7,000

2. Cash $12,000 Bank loan payable $12,000

3. Cash $47,000 Service Revenue $47,000

4. Cash ($30,000) Operating expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

4 0
3 years ago
If you wanted to compare the quantity of output of a country across time periods, which of the following would you use?
SOVA2 [1]

Answer:

the best way to compare the output in quantities over a period of times will be  (D) real GDP.

this is becasue real GDP is calculated by  adjusting for the changes in prices, therefore it does not contain any changes in the prices and only reflects the increase or decrease of the output quantities.

Explanation:

4 0
3 years ago
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation
katrin [286]

Answer:

$40,000

Explanation:

We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.

Calcuation

iability on the transfered real estate        $300,000

less: adjusted basis value                       ($260,000)

Gain recognized                                        $40,000

3 0
3 years ago
Read 2 more answers
brussels enterprises issues bonds at par dated january 1, 2021, that have a $2,700,000 par value, mature in four years, and pay
Nadusha1986 [10]

The journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

<h3>Journal entry</h3>

1. January 1

Debit Cash $2,700,000

Credit Bonds payable $2,700,000

(To record  issuance of bonds for cash)

2. June 30

Debit bond  Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record  first semiannual interest payment)

December 31

Debit bond  Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record second semiannual interest payment)

3. December 31, 2021

Debit Bonds payable $2,700,000

Credit Cash $2,700,000

(To record  payment of bonds payable)

Therefore the journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

Learn more about journal entries here:brainly.com/question/14279491

#SPJ1

6 0
1 year ago
Jon described that there are "Three Circles" when it comes to finding a job. Identify and describe each of the "Three Circles" i
Kay [80]

Answer:

well one is what your passion is. like what you like. what people will pay you to do and how much. and what you are good at.

Explanation:

3 0
3 years ago
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