Answer:
$330,000
Explanation:
Calculation for the interest cost
Using this is
Interest cost=Beginning balance of the PBO * discount rate
Let plug in the formula
Interest cost=$5.5 million * 6%
interest cost=$330,000
Therefore the interest cost is equal to:$330,000
Answer:
Purchases is $3400 million
Explanation:
Cost of goods formula comes readily helpful in this case.
Cost of goods sold=beginning inventory+purchases-ending inventory
by arranging the formula,the purchases formula is given thus:
Purchases=cost of goods sold-beginning inventory+ending inventory
cost of goods sold is $2,900 million
ending inventory is $4,600 million
beginning inventory is $4,100 million
purchases=($2,900-$4,100+$4,600) million
purchases=3400 million
Answer:
B) Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.
Explanation:
The journal entry is as follows:
Account Debit Credit
Retained Earnings $36,000
Common Stock Dividend Distributable $30,000
Paid in Capital in Excess of Par Value $6,000
Answer: 6.22%
Explanation:
To find the annual rate of return, find the geometric mean of the returns:
= ¹⁸√ (1 + 3.8%)⁸ * (1 + 8.2%)¹⁰ - 1
= ¹⁸√ 2.9638173484126186153 - 1
= 1.0622187633434 - 1
= 6.22%
Answer:
$5,896,778
Explanation:
The computation of the increase value in the liabilities section is shown below:
= Present value of the first liability due in one year + Present value of the second liability due in three years
= $1,388,889 + $4,507,889
= $5,896,778
For computing the increase value in the liabilities we simply added the present value of two liabilities given in the question
