Answer: The answer is provided below
Explanation:
Adjusting entries are the entries that are passed at the end of the year. They are passed to adjust the account so as to make them follow the matching principle.
In the calculation attached, it should be noted that the salary expenses was calculated as the amount earned per day by the number of days. This is:
= $800 × 5
= $4000.
The necessary journal has been attached
Answer:
$119.56
Explanation:
We will use compound interest formula to solve this problem.
The formula is:
Where
F is the future value
P is the present amount
r is the rate of interest per period
t is the number of periods
Here,
F is the value we want, after 3 years
P is the present amount, $100
r is the rate of interest per quarter (per period)
Given r = 6% annually, so that would make:
6%/4 = 1.5% per quarter, or 1.5/100 = 0.015
Also, t is the number of quarters in 3 years, that would be 4*3 = 12
Now, substituting, we get our answer:
The first answer choice is right, $119.56
EAR = (1 + periodic interest rate)^N - 1
<u>9.25 % Quarterly %</u>
EAR = = 0.09575 or 9.58%
<u>16.75 Monthly % </u>
EAR = = 0.1809766 or 18.10%
<u>15.25 Daily % </u>
EAR = = 0.1647053 or 16.47%
<u>11.25 Semiannually %</u>
EAR = = 0.115664 or 11.57%