Answer:
$125,000
Explanation:
When records are made of a purchase we do not consider the original price the seller bought the item or the fair market value of the good.
We record the amount that was actually paid while purchasing the good.
In this scenario although the the fair market value of the building was $150,000 and the price the owner originally bought it was $50,000, the amount we will record for the purchase is what was paid. That is $125,000
Answer:
FV= $11,733.20
Explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 5 years
Interest rate= 8% = 0.08
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.08^5) - 1]} / 0.08
FV= $11,733.20
Answer:
stockholer's equity will be overstated by $800.
Explanation:
The adjustment required is to record $800 of supplies used as an expense, hence, by carrying out the adjustment, net income is overstated by $800 so also retained earnings and shareholders' equity.
In other words,the balance that would be left in supplies is opening balance of $200 plus purchase of supplies which is $950 minus the supplies used.
balance of supplies=$200+$950-$800=$350
Option B is wrong the balance expected is $350 and the balance without adjustment is $200,that is $150 understatement not $350
Answer:
55,000 shares
Explanation:
Given that
60000 shares were originally given
5000 were subsequently reacquired
Thus. Net number of shares issued
= number of shares originally issued - number subsequently reacquired
= 60000 - 5000
= 55,000
Number of outstanding shares therefore is 55,000.
NOTE that, outstanding shares refer to the number of shares that has been issued, purchase or authorized by investors, that is, the number of shares currently held by all is shareholders.