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2 years ago

Bought goods for cash $100 to double entry system.

1 answer:

3 0

Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).

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It costs $34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol a

victus00 [196]

Answer:

The investor will pay up the rereofitted pumps in a period of 22.52 months.

Explanation:

<em><u>First,</u></em> we solve for the amount of profit generate per month:

21,000 gallons a month x $0.09 per gallon = $1,890

Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $1,890.00

time n

rate 0.02

PV $34,000.0000

$1890 \times \frac{1-(1+0.02)^{-n} }{0.02} = 34000\\$

$(1+0.02)^{-n}= 1-\frac{34000\times0.02}{1890}$

$(1+0.02)^{-n}= 0.64021164$

We use logarithmics properties to solve for n:

$-n= \frac{log0.64021164021164}{log(1+0.02)$

-22.52006579

n = 22.5200 = 22 and a half month.

7 0

2 years ago

you lend a friend 10,000 dollars for which your friend will repay you 27,027 dollars at the end of 5 years. What interest rate a

Step2247 [10]

Answer:

The interest rate is "21.999%".

Explanation:

The given values are:

Amount lent,

= 10,000

Amount repaid,

= 27,027

Years (n),

= 5

As we know,

⇒ $Amount \ repaid = Amount \ lent\times (1+r)^n$

On substituting the given values, we get

⇒ $27,027=10,000\times (1+r)^5$

⇒ $\frac{27,027}{10,000}=(1+r)^5$

⇒ $2.7027=(1+r)^5$

⇒ $1+r = (2.7027)^{(1/5)}$

⇒ $1+r=1.21999$

On subtracting "1" from both sides, we get

⇒ $1+r-1=1.21999-1$

⇒ $r=0.21999$

i.e.,

⇒ $r=21.999 \ percent$

5 0

2 years ago

A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the

Marianna [84]

Answer:

Credit to Prepaid insurance for $400 and Debit to Insurance expense for $400

Explanation:

The journal entry is given below:

Insurance expense ($4800 × 1 ÷ 12) $400

Prepaid Insurance $400

(To record insurance expense)

Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets

4 0

2 years ago

Why does a surplus exist under a binding price floor?

klemol [59]

Answer:

it makes the price so low that the quantity demanded exceeds the quantity supplied on the legal market.

7 0

2 years ago

Before you can reasonably expect people to share their perceptions and opinions, particularly about things they believe need to

Annette [7]

Well said, you've been in the workforce or heard the war stories.

5 0

2 years ago