Answer:
Correct answer is letter B, $2,200
Explanation:
Using accrual basis method, revenue and expenses will be recognized when incurred.
The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)
An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.
($4,800 / 24 months = $200 x 11 months = $2,200)
Answer:
FV $4,594,590
Explanation:
The annuity which produce funds will start on the seventh year thereofre there will be 4 annual deposits at the beginning of each year.
We solve for the future value of an annuity-due of 4 year at 10% interest rate:
C 900,000.00
time 4
rate 0.1
FV $4,594,590
This is the amount accumualted at the end of the tenth year
Answer:
$52,000
Explanation:
Bonus is 20% on annual net income, after deducting the bonus.
Let the annual income after deducting bonus be g
Then,
Bonus = 20% of g
= 0.2g
Annual income before bonus = annual income after bonus + bonus
312,000 = g + 0.2g
g = 312000/1.2
g = $260,000
Bonus = 0.2g
= 0.2 × 260,000
= $52,000
Is the simple desire to help one another
Answer:
$2,848.94
Explanation:
first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.
You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:
PV = $25,000 / (1 + 3%)¹⁶ = $15,579.17
that is now the future value of our annuity due:
FV = semiannual deposit x FV annuity due factor (3%, 5 periods)
$15,579.17 = semiannual deposit x 5.46841
semiannual deposit = $15,579.17 / 5.46841 = $2,848.94
