Answer:
c. the cash flows from investing activities section.
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
Answer:
b. $461,820
Explanation:
The computation of the amount reported in the balance sheet is shown below:
But before that we need to find out the amortization of discount which is
= Purchased value of bond × interest rate of return - face value of bond × interest rate
= $456,200 × 10% - $500,000 × 8%
= $45,620 - $40,000
= $5,620
Now the amount reported is
= Purchased value + discount amortization
= $456,200 + $5,620
= $461,820
Hence, the option b is correct
Answer:
The answer is $1,500
Explanation:
Accounting equation can be stated as follows:
Equity = Asset - Liability
Asset = Equity + Liability
Liability = Asset - Equity.
What a firm is obligated to pay its creditors is known as a liability and its value in the question is $8,900
The assets owned by the company totalled $10,400
Now to find market value of the shareholders' equity, we use:
Equity = Asset - Liability
$10,400 - $8,900
= $1,500
Answer:
a. $26,720
Explanation:
Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:
Original cos t = Equipment purchase cost + freight charges + installment charges
= $68,000 + $2,800 + $8,000
= $78,800
Now the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ estimated life in years
= ($78,800 - $12,000) ÷ 5 years
= $13,360
Now the accumulated depreciation is
= Depreciation expense × number of years
= $13,360 × 2 years
= $26,720
The principal duhhh dumb add jhit
