Answer:
C. Debit Buildings; Credit Notes Payable.
Explanation:
The journal entry to record the given transaction is shown below:
Building A/c Dr XXXXX
To Notes Payable A/c XXXXX
(Being the building is purchased)
Since the building is purchased which increases the value of the asset so the building account is debited and the payment is done by borrowing amount from the bank i.e note payable so this account would be credited
Answer:
Dr Accumulate depreciation $5,000
Dr Loss on asset retirement $5,000
Cr Equiqment $10,000
(to record the Equiment retirement at the end of fifth year of its 10-year useful life)
Explanation:
The annual depreciation is calculated as: (10,000 - 0) / 10 = $1,000
As it is at the end of fifth-year, the accumulated depreciation associated with the Equiment will be : 5 x 1,000 = $5,000
As a Equiment is retired without any recovery, the booked value of the Equiment is "written-off" by a Credit entry of $10,000; the associated accumulated depreciation is also "removed" from the Balance Sheet by a Debit entry of $5,000; which all leaves us the Loss on Asset Retirement at $5,000 record by a Debit entry.
Answer:
1. percentage-of-sales
Explanation:
Assigning a cost which can be traced as a percentage of the sales budget would make it easier for the management to focus their endeavors, but creates the understanding that promotion is the cause of sales, rather than sales being a result of the promotion, among other things.
Answer:
I will pay $1070.24 for the Bond.
Explanation:
Coupon payment = = $80
Number of years = n = 10 years
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$80 x [ ( 1 - ( 1 + 7% )^-10 ) / 7% ] + [ $1,000 / ( 1 + 7% )^10 ]
Price of the Bond = $80 x [ ( 1 - ( 1.07 )^-10 ) / 0.07 ] + [ $1,000 / ( 1.07 )^10 ]
Price of the Bond = $561.89 + $508.35
Price of the Bond = $1,070.24
You should do all of the above. Listen to what they are saying, Hear what they are saying, Think how it affects you, and react when they're done criticising you.