Answer:Equity multiplier=1.6
Explanation:
Debt equity ratio is given as debt/equity , Therefore
Debt = Debt equity ratio X Equity
=0.60 x $486,000
= $291,600
The Total assets given as Liability(debt+equity) will now be
=$291,600+$486,000
=$777,600.
Therefore Equity multiplier, Total assets/Total equity
=(777,600/486,000)=1.6
Answer:
Kingbird, Inc. Journal entry
March 1 2017
Dr Cash (250,000*96%) 240,000
Dr Discount on bonds payable
(250,000×4%) 10,000
Bonds payable 250,000
(to record issuance of bonds)
Explanation:
Since Kingbird, Inc. issues $250,000, 10 years 6% bonds at 96 this means we have to record the transaction as issuance of bonds by Debiting Cash with (250,000*96%)240,000 and as well Debiting Discount on bonds payable with(250,000×4%) 10,000 while Bonds payable will be Credited with 250,000.
Answer:
c. $8,000
Explanation:
The security deposit is usually refundable and NOT part of the rental income and, therefore, it should be deducted from the total amount received when reporting rental income for the tax year.
Thus, Brad and Kate should report $8,000 as rental income in the current tax year.
Answer:
Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
Variable cost: Fuel, Shipping charges, Payments for raw materials,
Explanation:
Fixed costs are costs that are not changed regardless of quantity of goods being produced such as rent for equipment, taxes, depreciation and so on.
Variable costs are costs that change with regard to the quantity of goods being produced such as cost of raw materials, cost of packaging and so on.
Example of fixed and variable costs are:
- Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
- Variable cost: Fuel, Shipping charges, Payments for raw materials,
Answer: <em>Option(C) is correct.</em>
Explanation:
Spanish America also known as Hispanic America, is referred to the state comprising of the Spanish-speaking nations in South America. During colonization, Spanish America evolved and saw cultural amalgamation at that time it prominently became, part Indian, part African but with one faith, language and federal system.
These nations usually have prominent commonalities. Spanish is the main predominant language, usually sharing the official title with more than one indigenous languages. The predominant religion is Roman Catholicism.
