Answer:
ABC Daycare
Effect of Performing Plumbing Services on account on the Accounting Equation:
Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565
Explanation:
a) Data and Analysis:
Accounts receivable $565 Service Revenue $565
The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction. It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two. This equation forms the basis for the double-entry system of financial accounting.
Answer:
The journal entry to be recorded for the payment of the note on date of maturity is shown below:
Explanation:
The journal entry to be recorded for the payment of the note on date of maturity is as follows:
Notes Payable A/c..........................Dr $9,000
Interest expense A/c......................Dr $148
Cash A/c..........................................Cr $9,148
Being payment of the note payable is reported on the maturity date
As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.
Working Note:
Interest expense = $9,000 × 10% × 60/ 365
Interest expense = $148
1. How much interest would you pay on a loan of $1,230 for 15 months at 15 percent APR if the interest is 18.75 per $100?
The chart probably refers to interest per $100 of loan. So, the interest for a $1,230 loan would be (1230/100) * 18.75 = 230.625 ~ 230.63
So, the answer will be B $230.63.
2. Sherri borrowed $3,200 at 13 percent APR for 18 months. If she must pay 19.5 per $100, what is the total interest?
3,200 / 100 = 32 ... x 19.5 = 624
Principal x int rate x time = 3200 x .13 x 1.5 yr = 624 interest
So, the answer will be the A $624.
3. What is the total amount that Sherri (in question number 2) will repay?
The correct answer will be the $3,824.
a)Little book LTD earning per share is $1.118 per share.
Explanation:
To calculate earning per share we will use following formula:
Now to find net income we will take help of asset turnover ratio :
Asset turnover ratio = 
1.5 × $860000 = x
x (net sales) = $1290000
Outstanding shares = 75000 shares
So Net Income = $1290000×.065
= $83850
Now Earning per share = 
Earning per share = $1.118
b) Market to Book Ratio will be 1.2 for Little Book LTD.
Explanation:
Market to Book Ratio =
Market Capitalization = $ 75000× $ 12
= $900000
So, Market To Book Ratio =
Market To Book Ratio = 1.2
Answer:
The correct option is A,5.72 times
Explanation:
The number of times that interest charges gives a sense of how financial stable is in its ability to pay interest on bonds as at when due.It is key consideration for prospective bondholders when assessing whether to buy bonds in a particular company
Number of times interest charges earned=net income before interest/interest
net income before interest charges=net income+interest charges
net income is $340,000
interest charges=$1,200,000*6%=$72,000
net income before interest charges=$340,000+$72,000=$412,000
number of times interest was earned=$412,000/$72,000=5.72
