In an electric motor, a commutator

On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha

Harman [31]

Answer:

2016 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

2017 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

Journal entries for 2018 expenditure

Dr repairs and maintenance $2900

Dr Equipment account $11850

Cr Cash account $14750

2018 Depreciation

Dr depreciation expense $4800.83

Cr Accumulated depreciation $4800.83

Explanation:

There are two policies for depreciating non-current asset especially when it is acquired part-way through the year like we have here, namely full year depreciation in the year of purchase and none in the year of disposal or proportional depreciation throughout the useful life,I am adopting the former in this question.

Formula for depreciation=cost-residual value/useful life

Yearly depreciation is ($57200-$0)/10=$5720

However,after two years the book value is calculated thus:

Book value=$57200-($5720*2)=$45760

additional cost incurred in enhancing the capacity of the asset would be added : $45760 +$11,850=$57610

Since the useful life has also been reviewed up to 12 years, the depreciation from now on is $57610/12=$4800.83

5 0

3 years ago

Read 2 more answers

A newly issued bond has a maturity of 10 years and pays a 7.7% coupon rate (with coupon payments coming once annually). The bond

Sliva [168]

The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.

<u>Explanation</u>:

A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
So the convexity of the bond is 61.810.

3 0

3 years ago

Which of these are types of retail ownership? (Select all that apply.)

lisov135 [29]

Answer:

esc dont know

Explanation:

pp

sex

8 0

3 years ago

Luna wanted to convince the technology department at her company to install new accounting software. Some staff members supporte

Gnom [1K]

Luna realized that the undecided group was her target audience so she focused most of her effort on them.

<u>Explanation: </u>

A targeted audience is a publication, advertising or other text. It is a particular group of consumers in the standard target market of marketing and advertising, known as targets or recipients of a specific ad or email.

In the end, it all includes assessing relevance for a target audience profile. You will attract a customer more often if your services and the goods you deliver suit what your audience wants.

If your customer you want is "everybody," it's very difficult for you to communicate in a deeper way with anyone. The more connected you are to others; the more likely you are to be a protector and a loyal user of your company.

7 0

3 years ago

Investors are willing to purchase stocks having high P/E ratios because:

skelet666 [1.2K]

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

4 0

3 years ago