Answer and Explanation:
The journal entry is shown below:
Jen Rogers, Capital $35,000
To Jen Rogers, Withdrawals $35,000
(Being withdrawals entry is recorded)
Here the Jen Rogers, Capital is debited as it decreased the stockholder equity while the Jen Rogers, Withdrawals is credited as it also decreased the drawings account. Also, the capital contains normal credit balance while drawings contains normal debit balance
Answer:
Expected return on equity is 11.33%
Explanation:
Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:
WACC=(Ke*E/V)+(Kd*D/V)
Kd is the cost of debt at 6%
Ke is the cost of equity at 12%
D/E=1/2 which means debt is 1 and equity is 2
D/V=debt/debt+equity=1/1+2=1/3
E/V=equity/debt+equity=2/1+2=2/3
WACC=(12%*2/3)+(6%*1/3)
WACC=10%
If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity
D/V=debt/debt+equity=1/1+3=1/4
E/V=equity/debt+equity=3/1+3=3/4
WACC=10%
10%=(Ke*3/4)+(6%*1/4)
10%=(Ke*3/4)+1.5%
10%-1.5%=Ke*3/4
8.5%=Ke*3/4
8.5%=3Ke/4
8.5%*4=3 Ke
34%=3 Ke
Ke=34%/3
Ke=11.33%
Answer:
Depletion $ 2,000,000 (debit)
Accumulated Depletion $ 2,000,000 (credit)
Explanation:
Salter Mining Company must use the Depletion Unit Method to provide for <em>usage</em> of Mine.
Depletion for the year = (Cost of Asset - Residual Value)/ Expected Total Contents in Units × Number of Units Taken During the Period
Thus Depletion for the year, = ( $91 million-$6.4 million)/ 1,880,000 tons × 60,000 tons
= $ 84,600,000 / 1,880,000 × 60,000
= $ 2,000,000
Answer:
The correct answer is letter "C": diminishing returns.
Explanation:
The traditional view of the production process establishes that the extra production generated by an additional unit of capital drops as the inventory of capital increases. Other production determinants, including human capital, natural resources, and technology keep their same levels.
The best advice for concluding a presentation is by having
to review major points as it is essential to be able to deliver your main
purpose or the important information you want to deliver to your audience and
in the same time, the individual should focus on what he or she wants for his
or her listeners to think, remember and even do.
