Answer:
Debit Asset Improvement account $105,000
Credit Cash account $105,000
Being entries to record cost of modernization of store.
Explanation:
The cost of the modernization is a cost that will be capitalized with the cost of the store as an asset. When an asset is purchased for cash, the adjusting entries required are;
Debit Fixed asset account
Credit Cash account
The modernization will be recognized in the Asset improvements account hence the debit entry will be posted there while the corresponding credit will go to cash account.
Answer:
His loan payment each quarter is nearest to $4,705.10.
Explanation:
Using a Financial Calculator enter the following data and find PMT, the loan payment each quarter
Pv = $70,000
n = 4 × 5 = 20
r = 12%
P/yr = 4
Fv = $0
Pmt = ? - $4,705.10
Thus PMT, the loan payment each quarter will be $4,705.10.
Answer:
The company's net operating income for May is $7,930
Explanation:
Sales revenue = $97,000
Variable costs
= $97,000 × (1 - 70%)
= $97,000 × 0.69
= $66,930
Fixed costs = $38,000
Therefore, net operating income = Sales - revenue - variable cost - fixed cost
= $97,000 - $66,930 - $38,000
= $7,930
Answer: The purpose of the cash flow statement is to show where an entities cash is being generated (cash inflows), and where its cash is being spent (cash outflows), over a specific period of time (usually quarterly and annually). It is important for analyzing the liquidity and long term solvency of a company.
Farming industry in this region began to succeed.
