Credit the "bond payable" liability account for the total face value of the bonds and debit cash for the same amount.
Answer:
$147,000
Explanation:
According to the historical cost principle, the assets of the company should be recorded at the purchase price or acquisition price in the financial statements
Since in the given situations many values are given with respect to the acquisition done by the seller, for tax turquoises, etc
But it is recorded at the purchase price i.e $147,000
Answer:
$119.56
Explanation:
We will use compound interest formula to solve this problem.
The formula is:
Where
F is the future value
P is the present amount
r is the rate of interest per period
t is the number of periods
Here,
F is the value we want, after 3 years
P is the present amount, $100
r is the rate of interest per quarter (per period)
Given r = 6% annually, so that would make:
6%/4 = 1.5% per quarter, or 1.5/100 = 0.015
Also, t is the number of quarters in 3 years, that would be 4*3 = 12
Now, substituting, we get our answer:
The first answer choice is right, $119.56
Answer:
Cullumber Company
Balance Sheet
As at 2022
Explanation: Amount in $
Current Assets
Accounts Receivable 12,500
Cash 13,000
Prepaid Insurance 6,600
Supplies 4,600
Total Current Assets 36,700
Non-Current Assets
Equipment (225,000-36,900) 188,100
Total Assets <u> </u><u>224,800</u>
Liabilities & Shareholders' Equity
Current Liabilities
Accounts Payable 10,600
Notes Payable 65,000
Salaries Payable 3,900
Total Current Liabilities 79,500
Equity
Common Stocks 97,000
Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700) 64,300
Dividends (16,000)
Total Equity 145,300
Total Liabilities & shareholders' equity <u>224,800</u>
