3. Why accrue an expense?

1 answer:

8 0

Because accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities.

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On January 1 of this year, Barnett Corporation sold bonds with a face value of $ 500,000 and a coupon rate of 7 percent. The bon

adoni [48]

Case-A

par value of bonds 500000

The stated rate of interest 7%

The market rate of interest 7%

As stated and the market rate of interest is equal, the bonds are issued at par value.

Therefore,

Cash received from issuance of bonds 500000

Interest expense (500000*7%) 35000

Cash paid for interest in Year-1 35000

Cash paid fat Maturity 500000

A market economic system is a monetary gadget where forces, called supply and demand, direct the production of goods and services. marketplace economies aren't managed through a government (like a central authority) and are instead based on voluntary exchange.

A market economic system is a financial machine in which the choices concerning investment, production, and distribution to the clients are guided with the aid of the fee indicators created with the aid of the forces of delivering and call for, wherein all suppliers and purchasers are unimpeded by way of charge controls or restrictions on contract freedom.

A marketplace is defined because of the sum general of all the buyers and dealers inside the region or area below consideration. The vicinity may be the earth, or international locations, regions, states, or cities. The cost, value, and charge of gadgets traded are as consistent with forces of delivery and demand in a marketplace.

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1 year ago

Rancher Hiram Walker purchased Rose, a cow, for $850 in the hope that she would breed calves. After several years of effort, Wal

Furkat [3]

Answer: Mutual mistake

Explanation:

A mutual mistake in a contract is a situation that arises when the parties in a contract make the same mistake in reference to a significant fact in the contract. i.e., they are mutually ignorant of a fact of the contract.

Had they both known about that mistake, they might not have gone into the contract so the contract is voidable in this scenario.

Both Walker and Sheerwood were mutually mistaken about the fact that Rose was pregnant when they went into the contract so this contract is voidable by this theory.

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2 years ago

Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of

julia-pushkina [17]

Answer:

a-The present value of revenue in the first year is $61,085.92.

b-The total time it would take to pay for its price is 2.44 years of 29.33 months.

Explanation:

Let the function of the revenue earned is given as

$S(t)=\left \{ {{66000t+38000} {\ \ 0The present value is given as [tex]PV=\int\limits^a_b {S(t)e^{-rt}} \, dt$

Here

a and b are the limits of integral which are 0 and 1 respectively
r is the rate of interest which is 5% or 0.05

S(t) is the function of value which is $S(t)=\left \{ {{66000t+38000} {\ \ 0So the equation becomes[tex]PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t+38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t)e^{-0.05t}} \, dt+\int\limits^{0.5}_0 {(38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=8113.7805+18764.4669+34207.6751\\PV=61085.9225$
So the present value of revenue in the first year is $61,085.92.
b-
The time in which the machine pays for itself is given as
$PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt+\int\limits^t_1 {S(t)e^{-0.05t}} \, dt\\PV=61085.9225+\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt$
The present value is set equal to the value of machine which is given as
$160,000 so the equation becomes:
$PV=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\160000=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt=160000-61085.9225\\\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt=98914.07\\\\t=-\dfrac{\ln \left(0.93034\right)}{0.05}\\t=1.44496$
So the total time it would take to pay for its price is 2.44 years of 29.33 months.