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2 years ago

List at least one of each transaction related to all of the following business events:

Business

1 answer:

NeX [460]2 years ago

8 0

Answer:

a. Purchase of goods or services for cash

Transaction: Cash paid towards the dresses and shoes for security guards.

Accounts affected: Cash and Purchases

b. Providing services for cash

Transaction: Cash received against Bill raised towards Security services to M/s Major Computers for November month

Accounts affected: Cash and Service Revenues

c. Providing services on account

Transaction: Bill raised towards Security services to M/s Prime innovators for November month

Accounts affected: Accounts Receivables and Service Revenues

d. Purchase of goods or services on account

Transaction: Purchases the dresses and shoes for security guards on credit form M/s Immediate Dress.

Accounts affected: Accounts Payable and Purchases

e. Payment of a previously recorded expense

Transaction: Payment of bill raised by M/s Immediate Dress towards purchase of security guards dresses and shoes last month.

Accounts affected: Accounts Payable and Cash

f. Receipt of a previously recorded revenue earned

Transaction: Received payments towards Bill raised to M/s Prime innovators for Security services for November month

Accounts affected: Accounts Receivables and Cash

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What happens to supply when input costs go up?

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Supply costs also go up

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3 years ago

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Ted, a project manager, wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Ye

Art [367]

Answer:

The project will not be approved

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

IRR = 13,41%

profitability index = 1 + (NPV / Initial investment)

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

I = 10%

NPV = $2,772.72

PI = 1 + $2,772.72 / $58,500 = 1.04

The project will not be approved because the PI is less than the amount of return the boss wants even though the IRR is less than the discount rate

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

4 0

3 years ago

congratulations! you were the 10th caller on the kmth morning show and you just won $4,000.00. after you calm down, you decide t

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Compound interest is the idea that interest is earned on top of interest from that point forward by adding accumulated interest back to the principal amount. Here, a month's worth of compound interest is calculated (time period). As a result, the time period is 12 times, and the interest rate is divided by 12.

The scenario states that the computation of the provided data is as follows:

The current value is $4000.

Rate = 7%

Monthly compound rate equals 10% times 12.

Duration = 2 x 12 = 84

So, using a financial calculator, we can estimate the value in the future.

FV = $4,884.56

Principal multiplied by one plus the interest rate divided by the number of periods, raised to the power of the number of periods, and that whole subtracted from the principal amount to yield the interest amount, is how monthly compounding is calculated.

To know more about Compound interest, click here:-

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10 months ago

The yield to maturity on 1-year zero-coupon bonds is currently 6.5%; the YTM on 2-year zeros is 7.5%. The Treasury plans to issu

alex41 [277]

Answer:

1. PV = 101.87

2. YTM = 7.46%

3. Price of the bond is $100.92

Explanation:

PV = 8.5/ (1.065) + 108.5/ (1.075)2

PV = 7.981 + 93.889

PV = 101.87

Part B:

PV = 101.870

FV = 100

N = 2

PMT = 8.5

Using Financial Calculator:

r = 7.459237

YTM = 7.46%

Part C:

The forward rate for next year, derived from the zero-coupon yield curve, is approximately:

(1 + forward Rate) = (1 + 0.075)2/ (1.065)

forward rate = 8.51%

Price of the bond = 108.5/ (1.0851)

Price of the bond = 100

Part D:

Interest Rate = 8.51% - 1% = 7.51%

Price of the bond = 108.5/ (1.0751)

Price of the bond = 100.92

5 0

3 years ago

Shue, a partner in the Financial Brokers Partnership, has a 30 percent share in partnership profits and losses. Shue's capital a

mr Goodwill [35]

Answer:

C. $300,000

Explanation:

Shue Capital Account:

contribution 50,000

partnership income x 30%

withdrawals (240,000)

change in capital account (100,000)

50,000 + Shue profits - 240,000 = -100,000

Shue profit = 240,000 - 100,000 - 50,000

Shue profit = 90,000

Partnership profit:

90,000 / 0.30 = 300,000

4 0

3 years ago