Answer:
Option C is correct one.
Interest expense 773
Discount on bonds payable 73
Cash 700
Explanation:
2016 interest expense = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate
= $9,668 x 08
= $773
Cash interest payment
= maturity value of the bond x the stated interest rate = $10,000 x .07
= $700
Amortization of discount on bonds payable
= interest expense - interest cash payment
= $773 - $700.
= $73
Answer:
Vendors & Purchases → Enter Bills → New Bill
Explanation:
To record the part cash and part credit entry in Sage 50, we will use the following series.
Vendors & Purchases → Enter Bills → New Bill
To record the purchase transaction we need to enter the transaction in the vendors and purchase option and then we need to create separate bills for our part cash payment and part credit payment separately.
Answer:
High traffic
Explanation:
Higher traffic means more visibility, more visibility means more customers.
Answer:
a. It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Explanation:
Use the formula below to determine the number of months it would take Rachel to pay off her debt;
C *{1-(1+r)^(-n×t)}/(r/n)=PV
where;
C=annuity
r=annual interest rate
n=number of compounding periods in a year
t=number of years
PV=present value
In our case;
PV=$10,574
C=$260
r=16%=16/100=0.16
n=12
t=unknown
replacing;
260*{1-(1+0.16/12)^(-12×t)}/(0.16/12)=10,574
1-(1+0.16/12)^(-12×t)={10,574×(0.16/12)}/260
1-{1.013^(-12 t)}=0.542
(1-0.542)=1.013^(-12 t)
ln 0.458=-12 t (ln 1.013)
t=-ln 0.458/12×ln 1.013
t=5
It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Answer:
36.35%
Explanation:
According to the scenario, computation of the given data are as follows,
Sales = $78,400
Net income = $2,400
Cost of goods sodl = $43,100
Depreciation = $6,800
So, we can calculate the EBIT value by using following formula:
= EBIT ÷ Sales
= ($78,400 - $43,100 - $6,800) ÷ ($78,400)
= $28,500 ÷ $78,400
= 36.35%
Hence, the common-size statement value of EBIT is 36.35%
