Answer:
June 1
Debit : Cash $5,000
Credit : Common Stock $5,000
June 2
Debit : equipment $1,100
Credit : account payable $1,100
Explanation:
Journalize the transaction.
Those factors are:
<span>1. the ratio of purchased material and services costs as a percentage of total costs or income. Whcich will determine how much variable cost will incurred
2. the nature of the products or services acquired. Which determine the time table of the supply process
3. the extent to which supply and suppliers can provide competitive advantage. Which will determine the final pricing that come to the customers</span>
Answer:
Explanation:
Using future annuity formula
Fv = Pmt ( (1+r)ⁿ -1 )/ r
+ 1 = (1+r)ⁿ
In ( + 1) = n In ( 1+r)
n = In ( + 1) / In ( 1 + r)
FV, future value = $10,000, Pmt, periodic payment per year = $1,100, r rate = 11.82% = 0.1182 and n = number of years
n = 0.7297 / 0.11172 = 6.53 years approx 7 years
the last year payment will actually be less than $1,100
Answer:
$12,000
Explanation:
The double-declining method records a higher depreciable amount in the first years of asset life. It uses double the rate used in the straight-line method.
Using the double-declining method, the depreciation rate for Fathom will be 40 % ({1/5 x100 } )
first-year depreciation- 2018
=40/100 x $50,000
=0.4 x 50,000
=$20,000
Book value= $50,000- $20,000= $30,000
Second-year depreciation- 2019
= 40 % x 30,000
=0.4 x $30,000
=$12,000
By using the double-declining-balance depreciation amount for year two = $12,000