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Ostrovityanka [42]
3 years ago
13

Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily. If the account was opened 9 years ago, wha

t was the value of the initial deposit
Business
1 answer:
hjlf3 years ago
5 0

Answer:

The value of the initial deposit = $1269

Explanation:

Given - Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily.

To find - If the account was opened 9 years ago, what was the value of the initial deposit

Proof -

We know that,

If the interest rate is compounded n times per year at an annual rate r, the present value of a A dollars payable t years from now is:

P = A(1 + \frac{r}{n} )^{-nt}

Here,

A = 1723.57

r = 3.4% = 0.034

n = 365 (because it is compounded daily )

t = 9

So,

we get

P = 1723.57(1 + \frac{0.034}{365} )^{-365(9)}

   = 1723.57(1.000093151)⁻³²⁸⁵

   = 1723.57(0.736396351)

   = 1269.23066 ≈ $1269

∴ we get

The value of the initial deposit = $1269

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At the end of the first month of operations, the Lamar Company's accountant prepared financial statements that showed the follow
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Answer:

Assets = $87,350

Liabilities = $30,450

Stockholders' Equity = $56,900

Net Income = $7,900

Explanation:

The correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month can be determined as follows:

Assets = Recorded asset value - Depreciation + Unbilled service revenue = $90,000 - $4,500 + $1,850 = $87,350

Liabilities = Recorded liabilities + Unpaid wages = 30,000 + 450 = $30,450

Stockholders' Equity = Recorded Stockholders' Equity - Depreciation + Unbilled service revenue - Unpaid wages = $60,000 - $4,500 + $1,850 - $450 = $56,900

Net Income = Recorded net income  - Depreciation + Unbilled service revenue - Unpaid wages = 11,000 - $4,500 + $1,850 - $450 = $7,900

Note that from the above calculations, we can obtain:

Liabilities + Stockholders' Equity = $30,450 + $56,900 = $87,350

This therefore confirms the accounting equation that:

Assets = Liabilities + Stockholders' Equity = $87,350

8 0
3 years ago
On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100 brokerage commission. On Apri
Vaselesa [24]

Answer:

January 23rd

Dr Investment in Tolle                 300,100

Cr Cash                                        300,100

(to record the acquired of 10,000 Tolle's shares at $30 each and a brokerage cost of $100)

April 12th

Dr Cash                                 5,000

Cr Dividend Revenue          5,000

(to record dividend revenue from 10,00 Tolle's shares at $0.5 each)

June 10th

Dr Cash                                           135,900

Cr Investment on Tolle                 120,040

Cr Gain on investment disposal   15,860

(to record the sales of 4,000 Tolle's shares at $34 plus $110 commission fees incurred).

Explanation:

All the explanation is given at the end of each transaction. Further explanation as below:

Given there is no information mentioned whether the share acquired is fro 20% to above and the partial disposal of the investment comes quite near to the time of first acquire; we apply the Cost Method for accounting these transactions.

In the June 10th transaction, we have:

- The actual selling price per share = (Selling price x share sold - Brokerage commission) / share sold = ( 34 x 4,000 - 100) / 4,000 = $33.975;

- The cost of share sold per share = ( Purchasing price x share purchase - Brokerage commission)/ share purchased = ( 30 x 10,000 + 100) / 10,000 = $30.01

=> Cost of share recorded ( Cr Investment account) = 30.01 x 4,000 = 120,040;

=> Gain on investment disposal = ( 33.975 - 30.01) x 4,000 = 15,860.

=> Cash receipt = 4,000 x 34 - 100 = $135,900.

3 0
3 years ago
Financial objectives ________.a. relate to target outcomes that indicate a company is strengthening its market standing, competi
bogdanovich [222]

Answer:

The correct answer is letter "E": are necessary to set and to achieve because adequate profitability and financial strength increases a company's long-term health.

Explanation:

A company's financial objectives reflect the revenue the firm wants to earn out of the sale of goods or services. Organizations must meet those goals to ensure their operations will remain up and running. Otherwise, the association will have to look for other methods for financing their manufacturing processes and innovation which is likely leading them to ask for loans, thus, acquiring debt.

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Answer:

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Explanation:

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Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20. Costs for the last year were as follows
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Answer:

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Explanation:

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Direct labor= 38,000

Variable factory overhead= 8,000

Fixed factory overhead= 40,000

Total= $116,000

Unitary cost= 116000/10000= $11.6

Ending finished inventory= 4000*11.6= $46,400

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