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il63 [147K]
3 years ago
7

Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Kor

ie currently has $500,000 in the bank earning 3 percent interest per year. Refer to Scenario 13-1. Suppose Korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. What is Korie's annual opportunity cost of purchasing the factory?
A. $18,000
B. $6,000
C. $3,000
Business
1 answer:
viktelen [127]3 years ago
4 0
The answer is C.$3,000
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The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Account
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Answer:

Postal Service

The amount that would be reported for Stockholders' Equity at December 31, 2015 is:

= $130,000.

Explanation:

a) Trial Balance

December 31, 2015:  

Cash                                         $15,000

Accounts receivable                   11,000

Supplies                                       4,000  

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Equipment                               210,000

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Note payable, due 6/30/16                        70,000

Common stock                                           42,000

Retained earnings (1/1/15)                          60,000

Dividends                                   14,000

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Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000

Totals                                   $351,000 $351,000

Income Statement for the year ended December 31, 2015

Service revenue                                      $133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000     $91,000

Net income                                              $42,000

Statement of Retained Earnings

For the year ended December 31, 2015

Retained earnings (1/1/15)                        $60,000

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Dividends                                                    (14,000)

Retained earnings (December 31, 2015) $88,000

Equity:

Common stock     $42,000

Retained earnings  88,000

Total equity         $130,000

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