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3 years ago

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Contingent liabilities should be recorded in the accounts when: it is possible the future event will occur the amount of the lia

bility can be reasonably estimated. both of the above either of the above

1 answer:

slava [35]3 years ago

3 0

Either of the above would be correct

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Slim made a single deposit of $5,000 in an account that pays 7.2% in 2015. What equal-sized annual withdrawals can Slim make fro

evablogger [386]

Answer:

annual withdrawals is $1,393.87

Explanation:

given data

Amount Deposited = $5,000

Annual Interest Rate = 7.2%

First withdrawal = 2020

last withdrawal = 2025

solution

we consider equal sized annual withdrawals = x

so we can say that Amount Deposited amount will be as

$5,000 = $\frac{x}{(1+0.72)^5} + \frac{x}{(1+0.72)^6} + \frac{x}{(1+0.72)^7} + \frac{x}{(1+0.72)^8} + \frac{x}{(1+0.72)^9} + \frac{x}{(1+0.72)^{10}}$ ..........1

we take common here $\frac{x}{(1+0.72)^{4}}$

so

$5,000 = $\frac{x}{(1+0.72)^{4}} \times ( \frac{1}{(1+0.72)^1} + \frac{1}{(1+0.72)^2} + \frac{1}{(1+0.72)^3} + \frac{1}{(1+0.72)^4} + \frac{1}{(1+0.72)^5} + \frac{1}{(1+0.72)^{6}} )$

solve it we get

x = $1,393.87

so that annual withdrawals is $1,393.87

7 0

2 years ago

Left, right, center,and justify are types of what

forsale [732]

Answer:

Justified Alignment

Explanation:

The type of text alignment that is frequently seen in newspaper,magazines,and books(both the left and the right sides of the paragraph are perfectly straight).I'm sorry if it was wrong.

brainliest plz ;-;

8 0

2 years ago

Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area?

jeka94

Answer:

An area with younger people will have a higher demand for rentals and a lower demand for buying.

7 0

2 years ago

Read 2 more answers

The term ___________________ describes the proportion of deposits that the bankmust hold in the form of reserves that are not lo

antoniya [11.8K]

Answer:

reserve ratio

Explanation:

3 0

3 years ago

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon

nlexa [21]

Answer:

Cash proceeds is $37,702,607.23

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36

premium amortized=$214,869.64

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

=$1,874,386.88

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2

=$1,885,130.362

Bond expense for the first payment= 37,487,737.59 *10%/2

=$ 1,874,386.88

First year bond interest expense= 1,874,386.88+1,885,130.362

=$ 3,759,517.24

Find attached schedule in addition

4 0

3 years ago