Answer:
b. credit to Gain on Sale of Investments for $2,400.
Explanation:
May 1, 20Y6
Purchase price of Bond = $100
Number of Bond Purchased = $100,000 / 100 = 1,000 per bond
February 1, 20Y7
Sale Price of Bond = $103 per Bond
Gain on Sale = $103 - $100 = $3 per bond
Number of Bond Sold = $80,000 / 100 = 800 bonds
Gain on sold bonds = 800 bonds x $3 per bond = $2,400
Journal Entry Will be as follows:
Dr. Cr.
Cash (800 x 103) $82,400
Gain on sale $2,400
Investment in Bond $80,000
Answer:
We need to save $2,964 each year until retirement to reach our retirement goal.
Explanation:
First lets assume that we have retired, we now need to find the present value of all our future cash flows, which means we need to find out the present value of 40,000 every year. We will input the following in a financial calculator.
FV=0
PMT= -40,000
I=6
N=20
Compute PV= 458,796
This PV is what present amount of the future payments we will need at the start of our retirement which is after 40 years. This represents the amount of money we need to have at the end of 40 years in order to have enough for our retirement. Which means we can use this as the future value. Now we need to find how much do we have to save each year so we have 458,796 at the end of 40 years.
In a financial calculator we will input the following.
FV= 458,796
PV=0
I=6
N=40
Compute PMT= 2,964
We need to save $2,964 each year until retirement to reach our retirement goal.
This is true.................
Answer:
Explanation:
The income statement is that statement which reflects gains & income and expenditure & losses for a particular year
A multi step format of income statement show a classification of sales and expenses.
Like to compute net sales, we deduct sales discount & sales return and allowances from sales revenue
like this, there are various expenses such as administrative expenses, selling expenses which come under operating expenses.
Administrative expenses includes rent and sales & wages expenses. whereas, selling expenses includes freight out charges.
The insurance expenses is come when these all expenses are recorded.
The preparation of income statement using the multi-step format is given under attachment sheet.
<span>If Bruno's basis in LLC interest is $187,200 he receives $74,880 cash. Bruno's basis in inventory is $51,346 and his basis in land is $64,183. The total value Bruno has in cash, inventory, and land is $190,409. Bruno recognized a gain of $3,209.</span>
