Answer:
The correct answer is a. Debit Short-Term Investment for $160,000 and Credit Cash for the Same Amount.
Explanation:
Investments in Money Market Instruments, that is those instruments that mature within one year, are classified as Short-term Investments. Whereas, investments for a period of more than one year are termed as Long-term Investments. Since Kenall Corp. purchased bonds that will mature within one year, so such investment shall be classified under the head of Current Assets.
In-case of interest received semi-annually, Cash will be debited and Finance Income will be credited.
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Answer:
$88,321.59
Explanation:
Assuming that inflation remains constant at a rate of 2% over 40 years, this problem can be treaded as an annually compounded interest problem, with a principal of $40,000 at a 2% per year rate for 40 years.
The equivalent annual income (E) adjusted for inflation is given by:
In 40 years, the equivalent retirement income will be $88,321.59.
Answer:
Beginning units are 6,000
Desired ending units are 10,000
Explanation:
The required production unit + beginning FG units would be equal to the ending FG units + expected unit sales
Beg FG + 104,000 = End FG +100,000
6,000 + 104,000= 10,000 + 100,000
110,000 = 110,000.
Beg FG = 6,000
End FG = 10,000
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