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malfutka [58]
3 years ago
6

Ben and Carla Covington plan to buy a condominium. They will obtain a $225,000, 30-year mortgage at 7.5 percent. Their annual pr

operty taxes are expected to be $2,050. Property insurance is $530 a year, and the condo association fee is $245 a month. Based on these items, determine the total monthly housing payment for the Covingtons. Use Exhibit 7-7. (Round your intermediate calculations and final answer to 2 decimal places.)
Business
1 answer:
lana66690 [7]3 years ago
7 0

Answer:

<u>Monthly housing payment 2,033.22</u>

Explanation:

We need to calculate the monthly cuota of the mortgage

It will be the cuota of a 30 year annuity at 7.5 rate

PV \div \frac{1-(1+r)^{-time} }{rate} = C

We should convert the year in month and the rate in monthly, because the payment are monthly.

time= 30 year so 30 x 12 = 360 months

rate = 0.075 / 12 = 0.00625 monthly

Present Value = 225,000

225,000 \div \frac{1-(1+0.00625)^{-360} }{0.00625} = C

C = $1,573.23

Now we will calculate the propert taxes, insurance per month

2,050 /  12 = 170.83

530   /   12  =   44.16

1,573.23 + 170.83 + 44.16 + 245 = 2,033.22

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Osage Corporation issued 2,000 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco
skelet666 [1.2K]

Answer:

A. Dr Cash 52,000

Cr Common Stock 10,000

Cr Paid-in Capital in Excess of Par-Common Stock 42,000

B. Dr Cash 52,000

Cr Common Stock 10,000

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

C. Dr Cash 52,000

Cr Common Stock 52,000

D. Dr Organization Expense 52,000

Cr Common Stock10,000

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

E. Dr Land 52,000

Cr Common Stock 10,000

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

Explanation:

Preparation of the entry for the issuance

A. Dr Cash 52,000

Cr Common Stock 10,000

(2,000 x 5 )

Cr Paid-in Capital in Excess of Par-Common Stock 42,000

(52,000 – 10,000)

B. Dr Cash 52,000

Cr Common Stock 10,000

(2,000*5)

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

(52,000 – 10,000)

C. Dr Cash 52,000

Cr Common Stock 52,000

D. Dr Organization Expense 52,000

Cr Common Stock10,000

(2,000*5)

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

(52,000-10,000)

E. Dr Land 52,000

Cr Common Stock 10,000

(2,000*5)

Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000

(52,000-10,000)

7 0
3 years ago
Roberts Supply, Inc. provides the following data taken from its third quarter budget: Sep $83,000 $67,000 $59,000 Jul Aug ter Ca
Bumek [7]

Answer:

The answer is 1000 dollars.

Explanation:

In this question we are asked to calculate the cash closing balance as at 30 september. The opening cash balance that is 10000 dollars is given and, data related to the receipt and payments made in the quarter ended at september is also provide in the question.

We can easily calculate the cash balance as at 30 september with the help of accounting equation given below.

Closing Balance = Opening balance + Cash collections- Cash payments

                            = 10,000+ 209,000- 218,000*

                            = 1000$

* It include sum of all capital expenditures, operating expenses and purchases of direct material.

5 0
3 years ago
_____________ is when a product is included inside a TV show or movie. A. Product placement B. A commercial C. Promotion D. Inst
Zigmanuir [339]

Answer: A. Product placement

For example, when a character drinks a brand of soda, then this is a product placement. Ideally it should be subtle but sometimes it's very obvious.

3 0
2 years ago
All of the following are considered examples of disreputable conduct for which a CPA can be disbarred or suspended except Direct
ivann1987 [24]

Answer:

Failure to timely pay personal income taxes.

Explanation:

Rules of Conduct

This is simply said to be a full stated guidance to aim to help an auditor in applying broad principles contained in AICPA's Code of Professional Conduct

These Disreputable conduct if commited by an attorney, certified public accountant, or enrolled practitioner, it can therefore lead to them being disbarred or suspended from practice before the Bureau.

Rules sometimes do changes over time due to the fact that members of profession encountered specific ethical dilemmas in complying with the principles of the code

There are 6 Principles of the AICPA Code of Professional Conduct. They cover:

1. Responsibilities

2. The Public Interest

3. Integrity

4. Objectivity

5. Due Care

6. Scope and Nature of Services

The disreputable conduct for which a CPA can be disbarred or suspended includes the following;

1. When they Directly or indirectly attempting to influence the official action of any employee of the Internal Revenue Service by use of threats or false accusations or by bestowing any gift, favor, or thing of value.

2. Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension or disbarment.

6 0
2 years ago
Mendrisio Company purchased a piece of machinery for $30,000 on January 1, 2019, and has been depreciating the machine using the
aleksley [76]

Answer:

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

                                         Debit      Credit

Depreciation Expense $3,000

    Accumulated Depreciation $3,000

Explanation:

According to the given data we have the following:

Sum of year digits=5(5+1)/2

Sum of year digits=(5*6)/2

Sum of year digits=15

Depreciation for year 2019=$30,000*5/15

Depreciation for year 2019=$10,000

Depreciation for year 2020=$30,000*4/15

Depreciation for year 2020=$8,000

Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000

book value as on january 1, 2021=$12,000

Revised useful life=6 years-2 years=4 years

Therefore, Revised depreciation for 2021=$12,000/4

Revised depreciation for 2021=$3,000

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

                                         Debit      Credit

Depreciation Expense $3,000

    Accumulated Depreciation $3,000

3 0
2 years ago
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