3. Why accrue an expense?

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013. The manufacturing cost

Taya2010 [7]

Answer:

b. $3,115,234

Explanation:

Opening Balance as on 01.01.2013 $21,000,000

Less: Payment of First Instalment on 01.01.2013 $3,002,038

Net Balance as on 01.01.2013 $17,997,962

Add: Interest at 9% up to 30.06.2013 $1,619,816

Less: Payment of 2nd instalment on 30.06.2013 $3,002,038

Balance as on 01.07.2013 $16,615,740

Interest at 9% up to 31.12.2013 $1,495,417

Total interest revenue to be reported on the lease during the calendar year 2013 = $1,619,816 + $1,495,417 = $3,115,234

7 0

3 years ago

A. Construct an amortization schedule for the $300,000 loan with a 2.2% interest rate compounded monthly. The loan will be paid

Gala2k [10]

Answer:

since there is not enough room here, I prepared two amortization schedules on an excel spreadsheet and I attached them

Explanation:

in order to determine the monthly payment, we can use the formula to calculate present value of an annuity:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

PV = $300,000
annuity factor for 2.2% / 12 = 0.18333% and 180 periods = 153.1964438

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 153.1964438 = $1,958.27

we use the same formulas for the second question:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

PV = $300,000
annuity factor for 2.7% / 12 = 0.225% and 360 periods = 246.54977

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 246.54977 = $1,216.79

Download pdf

pdf

7 0

3 years ago

The trees these moths used to live on were white, but have been covered in soot from coal factories. Which moth will be more suc

Fantom [35]

Answer:

Dark moth

Explanation:

The survival of the fittest.

Before, the white moth's characteristics made them the fittest moth to survive in this environment, but as the environment changed and the color of the trees got darker, the advantage shifted to the dark moths. The dark moth's characteristics are now the best ones to survive on the environment, and therefore they will multiply, while the number of white moths will decrease. Now the dark moth is the fittest, and will survive in larger numbers.

5 0

2 years ago

Park Co. is considering an investment that requires immediate payment of $27,215 and provides expected cash inflows of $8,400 an

Sveta_85 [38]

Answer:

the net present value is $606.64

Explanation:

The computation of the net present value is shown below:

But before that the present value of annual cash inflows is to be determined i.e.

Present value = annual cash flows × PVIFA(8%,4years)

= $8,400 × 3.3121

= $27,821.64

Now

Net present value = Present value of cash flows - initial investment

= $27,821.64 - $27,215

= $606.64

Hence, the net present value is $606.64

8 0

3 years ago

On January 1, 20X1, Jennifer purchases common stock of Gamma Corporation for $100,000. During the year, Gamma Corporation stock

mars1129 [50]

Answer:

7%

Explanation:

Return on investment (ROI) is a very popular and simple profitability ratio used by financial and business analyst to test the profitability or otherwise of an investment. It is always calculated by dividing the net income by the Cost of Investment, expressed as a percentage.

ROI = (Net Income / Cost of Investment) x 100%

Net Income = Capital gain + dividend received

Capital gain = Sales of stock - Cost of stock

= $104,000 - $100,000 = $4,000

Dividend = $3,000

Net Income = $4,000 + $3,000 = $7,000

Cost of Investment = $100,000

ROI = ($7,000 / $100,000) x 100%

ROI = (0.07) x 100%

ROI = 7%

Therefore, the return on investment of the Gamma stock is 7%.

6 0

3 years ago