Here is the answer. When journalizing a transaction, and a short explanation is written, this is called a MEMORANDUM. This is <span>a form on which a brief message is written describing a transaction. Hope this answers your question. Have a great day!</span>
Answer:
The percentage profit if you purchase the stock and it rises to $30 a share
= $166.67
Explanation:
Titanic stock is $20 a share. You have $40,000 of your own funds to invest.
∴ $4,000.00/$20 = 200.00 shares were bought with $4,000.00
With margin of 50 percent and maintenance margin of 30 percent,
50% + 20% = 80%
∴ New Cost of Stock ($30.00) ÷ $4,000.00)
= $133.33 X 0.80
= $166.67
Answer:
$1,500
Explanation:
Data provided in the question
Sales for the appliances for the entire month = $50,000
Expected future warranty cost = 3% of sales
By considering the above information, the amount that should be reported as a liability is
= Sales for the appliances for the entire month × Expected future warranty cost
= $50,000 × 3%
= $1,500
Simply we multiplied the sales with the given percentage so that the liability amount could arrive
Answer:
b. He will prefer $85 two years from now.
Explanation:
Before making the choice, lets first calculate the present values of these cash flows,
PV factors @ 10% are as follows,
Year 1 = 0.909
Year 2 = 0.8265
Year 3 = 0.7513
Present value of 75 = 75 * 0.909 = 68.175
Present value of 85 = 85 * 0.8265 = 70.25
Present value of 90 = 90 * 0.7513 = 67.617
A rational individual thus would chose $85 two years from now as it yields the max present value.
Hope that helps.
Answer:
$17,190
Explanation:
Costs that make up the cost of an asset are cost of purchase , sales tax , transportation , shipment insurance , import duties on items , assembly installation and all other costs incurred in making the assets ready for use.
Workings
Cost of purchase - 16,000
Transportation - in 210
Shipping insurance- 120
Car import duties - 860
Total cost 17,190
Other cost will the expensed as incurred
