Answer:
$1,724.138
Explanation:
Given:
Payment received each year = $125,000
Rate of return = 7.25 % = 0.0725
Present value = ?
Computation of Present value:
Present value = Payment received each year / Rate of return
= $125,000 / 0.0725
= $1724137.93
Present value = $1724137.93
Present value = $1,724,138 (approx)
Therefore, firm have to contribute $1,724.138
<span>The total revenue they earned from selling the football tickets is $1,200,000.
As a result, they should debit cash for $1,200,000 and credit for unearned revenue for the same amount.</span>
Answer:
Take your gross sales revenue for the accounting period and subtract discounts, allowances and returns. This gives you net sales. Subtract the cost of goods sold from net sales and you get gross profit. In some cases, this might be a gross loss
Answer:
The accounting entries is as follows:
Debit Retained Earnings($35 by 30,000 shares) $1,050,000
Credit: Common Shares Account at Par Value($1 by 30,000 shares) $30,000
Credit Share Premium Account for Additional Paid in Capital ($34 by 30,000) = $1,020,000
Explanation:
A stock dividend is payment to shareholders by the company in the form of additional shares rather than dividend payment. This is common where the company is short of liquid funds to effect payment of dividends to its shareholders. They are usually issues in the form of fractions of existing holdings. Stock dividend increases the overall share holdings of the shareholder.
For Stock Dividend, the accounting entry is to transfer from the Retained Earnings to the Share Account and Share Premium or Additional Capital account.
The Share account is credited with the par value of the additional shares issued while the difference between the par value and the market value is credited to the Share Premium account. The full amount of the stock dividend is likewise debited to the Retained Earnings account.
Answer:
A) $4,000
Explanation:
Calculation for the beginning cash balance
Using this formula
Beginning balance=ending balance-increase in cash
Let plug in the formula
Beginning balance=$24,000 -$20,000
Beginning balance=$4,000
Therefore the beginning cash balance was:$4,000