Answer:
a- Parts - (asset) Dr $54000
Note payable Cr $54000
b- Note payable Dr $4500
Cash/Bank Cr 4500
c- Interest expense for the year end= $2700
Explanation:
The entry to record the purchase of parts from SUPPLY Corp will result in, an increase in asset and liability because ACE Corp isn't settling the purchase via a cash/bank payment rather it's issuing a 1-year installment note. Therefore the entry is as follows:
Parts - (asset) Dr $54000
Note payable Cr $54000
Now the payments on the 1-year note are installment based which means the $54000 note payments would have to be split between twelve months (i.e one year). The monthly payment would be $4500 against note payable.
The entry to record first installment payment on august is as follows:
Note payable Dr $4500
Cash/Bank Cr 4500
Moreover, along with payment of $4500 ACE Corp is also liable to pay interest on the payments made. Therefore, interest shall be calculated on monthly payment of $4500 at the rate of 12% as follows:
Interest on payment = $4500×12%
Interest on monthly payment = $540
The interest expense to be reported by ACE in its income statement for the year ended 12/31/2016 is of Five months (i.e from Aug till Dec), see as follows:
Interest expense for the year end= $540×5
Interest expense for the year end= $2700
Answer:
Number of stocks in portfolio = 15
Last year portfolio return = 11%
Out of 15 stocks, RJH stock is doubles in value.
Zachary should sell some of the RJH stock to attain some level of profit and is also constitutes higher percentage among all of the other holdings. By selling the stock of RJH, he will be able to earn more profit than any other holding he has.
Answer:
9.54%
Explanation:
-0.021 = ($1,140 + D - $1,220) / $1,220
-$25.62 = -$80 + D
$54.38 = Dividend (semiannual)
current yield = annual dividends / current price
annual dividends = $54.38 x 2 = $108.76
current price = $1,140
current yield = $108.76 / $1,140 = 0.0954 = 9.54%
Solution:
1. We have to use financial calculator to solve this
put in calculator -
PV -30000
FV 60000
PMT 0
I 8%
Compute N 9
Therefore It will take 9 years to reach his goal
2. We have to use financial calculator to solve this
put in calculator -
PV -28700
FV 0
PMT 7000
N 5
Compute I 7.00%
The interest rate implicit in this agreement rate =7.00%
3. We have to use financial calculator to solve this
put in calculator -
PV -10000
FV 0
I 9%
N 10
compute PMT $1,558.20
The annual payment Sam must make to pay back his friend = $1,558.20
It will stop growing at about 9-12 months