Answer:
Option d. Fixed period
Explanation:
time is very essential. Anytime the policy owner specifies payment to be guaranteed for a specific period regardless of who is the beneficiary, policy owner or who receive the payment,is the fixed period settlement option.
Anything that occur to annuity after the owner's death is dependent on the type of annuity and its payout plan.
A fixed-period, is that which is for a certain period of time. the annuity guarantees payments to the annuitant for a set length of time. example is about 10, 15, or 20 years and case payments will continue to be paid to the beneficiary until the time given or period is due or when account’s balance reaches zero.
Answer:
Anderson Co. 3,100 shares at $18 per share
Munter Ltd. 10,200 shares at $57 per share
King Co. 5,600 preferred stock at $42 per stock
a. Prepare the entry for the security sale on January 15, 2021.
- Dr Cash 58,880
- Cr Investment in Anderson Co. stock AFS 52,200
- Cr Realized gain on stock AFS 6,680
b. Prepare the journal entry to record the security purchase on April 17, 2021.
- Dr Investment in Castle's stock AFS 38,160
- Cr Cash 38,160
c. Compute the unrealized gains or losses.
- unrealized gain = $40,800 (gain in Munter) - $11,200 (loss in King) - $13,960 (loss in Castle) = $15,640
d. Prepare the adjusting entry for Vaughn on December 31, 2021.
- Dr Investment in Munter's stock 40,800
- Cr Investment in King's stock 11,200
- Cr Investment in Castle's stock 13,960
- Cr Unrealized gain - other comprehensive income 15,640
Answer:
False
Explanation:
Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.
Soft goods refers generally to clothing and other textiles like bedding and fabrics.
Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.
Answer:
Expected return on equity is 11.33%
Explanation:
Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:
WACC=(Ke*E/V)+(Kd*D/V)
Kd is the cost of debt at 6%
Ke is the cost of equity at 12%
D/E=1/2 which means debt is 1 and equity is 2
D/V=debt/debt+equity=1/1+2=1/3
E/V=equity/debt+equity=2/1+2=2/3
WACC=(12%*2/3)+(6%*1/3)
WACC=10%
If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity
D/V=debt/debt+equity=1/1+3=1/4
E/V=equity/debt+equity=3/1+3=3/4
WACC=10%
10%=(Ke*3/4)+(6%*1/4)
10%=(Ke*3/4)+1.5%
10%-1.5%=Ke*3/4
8.5%=Ke*3/4
8.5%=3Ke/4
8.5%*4=3 Ke
34%=3 Ke
Ke=34%/3
Ke=11.33%
Answer:
The accounting process begins with Analysis of business transactions and source documents
Explanation:
The Accounting process begins by<em> identifying the transactions and events</em> that occurred in the business.
After identification, the events and transactions have to be<em> recorded in appropriate Account</em> using the <em>proper books of entry</em>.
A list of Balances known as the <em>Trial Balance</em> is then computed when the Accounts are closed.
The Trial Balance is then used <em>to prepare financial statements</em>.
Financial Statements are then <em>Analysed</em> to assist various stakeholders and users of financial statements to <em>make decisions</em>.
