Answer and Explanation:
Journal entry to record the issuance of the bonds.
A.
Jan 1
Dr cash $500,000
Cr bonds payable $500,000
B. Journal entry to record the accrual of the interest
Dec 31 2020
Dr Interest expense $25,000
Cr Interest Payable $25,000
C. Journal entry to record the payment of interest on January 1, 2021.
Dr Interest expense $25,000
Cr Cash $25,0000
Interest expense $500,000×10%×1/2=$25,000
Answer:
33.33%
Explanation:
Let weight of T-bill be x, therefore weight of stock will be 1-x
Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills
1 = (1-x)*1.5 + x*0
1 = 1.5 - 1.5x
x = 0.5/1.5
x = 0.3333
x = 33.33%
Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.
Answer:
NPV = 138,347.55
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>
We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:
<em>Prevent Value of operating cash flow</em>
PV =A× (1- (1+r)^(-n))/r
A- 23,900, r - 12%, n- 5
PV = $23,900 × (1- (1.12)^(-5))/0.05
=206,769.963
<em>PV of Working Capital recouped</em>
PV = 5600× 1.12^(-5)
= 3,177.59
NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow
NPV = (66,000) + (5600) + 3,177.59 + 206,769.96
NPV = 138,347.55
Answer:
$2914
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense
3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
4. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9,920 - $1240) / 5 = $1736
Accumulated depreciation = 1736 x 2 = $3472
Book value at the beginning of 2021 = 9920 - 3472 = $6448
Depreciation expense in 2021 = (6448 - 620) / 2 = $2914
Enabling them to purchase capital and use it as they fit. having the rights means they can use the property for martgage and raise loans,or show as an asset and acquire capital on its worth. they can sublet the property and get resources from the rent as well
