<h3>
Answer:</h3>
<h3>
Explanation:</h3>
The formula for calculating the Monthly payments P for the sinking fund is as follows:
where,
P = Monthly payments to be made
A = Total amount to be accumulated
i = Interest rate for given time period
n = Number of time period
Assuming interest is applied at the beginning of each period.
We are given two scenarios.
<h3><u>
Scenario (i) - Deposit is made during the year:</u></h3>
In this scenario, as some of the year is already passed (assume 6 months), to complete the time period of 3.5 years the interest will compound 3 times (as the 0.5 year payments can be adjusted in the remaining part of the first year and no interest is applied on it). Hence, the interest will be applied 3 times.
<h3><u>
Scenario (ii) - Deposit is made at the beginning of the year:</u></h3>
For this case, the interest will be applied 4 times to complete the time period of 3.5 years for payment.
Answer:
$19,440
Explanation:
The computation of the direct material cost is shown below:
But before that first we have to determine the per unit which is given below
= Total direct material cost ÷ planned selling units
= $18,225 ÷ 4,050 units
= $4.5
And, the actually selling units is 4,320 units
So, the direct material cost is
= Per unit cost × actually selling units
= $4.5 × 4,320 units
= $19,440
We simply multiplied the per unit with the actually selling units so that the direct material cost could come
Answer: False
Explanation:
The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.
It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.
Answer and Explanation:
The journal entry to record the given transaction is shown below:
Prepaid rent Dr $10,140
To Cash $10,140
(Being the prepaid annual rent paid in cash is recorded)
For recording this we debited the prepaid rent as it increased the assets and credited the cash as it reduced the cash so that the proper posting could be done
Answer:
$84.100
Explanation:
At the end of March, the balance of the account Accounts Payable was $84100, because:
Beginning Balance $77.400 + Purchases on Accounts $43.700 - Payments on Accounts $37.000 = Ending Bal
ance $84.100
The account balance is always the net amount after factoring in all debits and credits.
Accounts payable are amounts due to vendors or suppliers for goods or services received that have not yet been paid for.
The sum of all outstanding amounts owed to vendors is shown as the accounts payable balance on the company's balance sheet.
