Answer:
Interest receivable $600
Explanation:
The interest is just for 9 months and the cash for the interest has not been received yet, so debit Interest Receivable.
Interest is calculated using the formula:
interest=Principal x rate x time
$16,000 x 5% x 9/12 = $600
Interest Revenue would be credited for $600, but that is reported on the Income Statement, not the Balance Sheet.
This type of advertising is called co-op or cooperative advertising wherein the ads of the retailers include the mention of manufacturers. In return, the manufacturers pay the retailers all or some parts of the advertisement cost. Cooperative advertising is an effective means for both manufacturers and retailers to reach their target markets.
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Answer:
C. $3,500
Explanation:
The formula for a straight-line method of depreciation is provided below:
annual depreciation charge=(cost-salvage value)/useful life
cost of the new truck=$42,000
salvage value=$0
useful life=7 years
depreciation=($42,000-$0)/7=$6,000( same as given in the question)
The truck was used for 7 months in the first year ended, from June 1 2019 to December 31 2019
Depreciation for the first year=$6000*7/12=$3,500
Answer and Explanation:
a. The computation of the interest earned is given below:
= $1,000 × (1.05)^10 - $1,000
= $628.29
b. Now the interest earned in case of withdrawn is
= $1,000 × 5% × 10
= $500
c. In part a there is a compound interest while on part b there is a simple interest so the both answers should be different
The same would be relevant and considered too
Answer:
6.76% annually
Explanation:
The rate of return bondholders receives on a callable bond until the call date is called Yield to call.
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
It is assumed that face value of Bond is $1,000
C = Coupon Payment = $1,000 x 3.8% = $38
F = Face value = $1,000
P = Call price = $950
n -= number of periods to call = 5 x 2 = 10 periods
Yield to Call = [ $38 + ( $1,000 - $950 ) / 10 ] / [ ( $1,000 + $950 ) / 2 ]
Yield to Call = [ $38 - 5 ] / $975 = $33 / $975 = 0.0338 = 3.38% semiannually
YTC = 3.38% semiannually = 6.76% annually
