It changes over time, depending on the expected rate of return on productive assets exchanged among market participants and people's time preferences for consumption.
Answer:
$246,287.86
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate = 7/4 = 1.75%
N = number of years = 4 x 3 = 12
$200,000( 1.0175)^12 = $246,287.86
Answer:
Marjam's entry to record this transaction should include a c. Credit to Long-Term investments for $63,600.
Explanation:
Marjam investment in MacKenzie is a Financial Asset. A financial Asset is an obligation to receive cash.
Marjam will be paid a cash dividend based on the share of ownership it has in MacKenzie.
Share of Ownership = 63,600 shares/ 120,000 outstanding shares
= 53%
<u>Marjam's entry to record cash dividends is as follows </u>
Dividend = $120,000 × 53%
= $63,600
Debit : Bank $63,600
Credit : Long-Term investments $63,600
Answer:
Total cost= $114,800
Explanation:
Giving the following information:
Direct materials $ 6.80
Direct labor $ 4.30
Variable manufacturing overhead $1.60
Sales commissions $ 1.20
Variable administrative expense $ 0.45
Unitary variable cost= $14.35
<u>Total cost for 8,000 units:</u>
Total cost= 14.35*8,000= $114,800
Answer:
Correct answer is D, Debit Insurance Expense, $460; credit Prepaid Insurance, $460
Explanation:
The company uses asset method of recording the purchase of insurance. Hence, at end of year end the company must recognize the expire portion of the policy and charge it against insurance expense.
$2,300 / 5 years = $460 (annual insurance expense)
Entry:
Debit Insurance expense $460
Credit Prepaid insurance $460
The balance of the prepaid insurance at the end of first year is $1,840 (2,300 - 460).
