Answer:
1. Transaction will have effects on Balance Sheet in the Assets Section and will be classified as an Investing Activity in the Statement of Cash flows.
2. Transaction will have effects on Balance Sheet in the Liability Section and will be classified as a Financing Activity in the Statement of Cash flows.
3. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity in the Statement of Cash flows.
4. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity of the Statement of Cash flows.
5. Transaction will have effect on Income Statement in the Expense Section and will be classified as a Financing Activity in the Statement of Cash flows.
Explanation:
1. Falcon purchases common stock of Wildcat. This is classified in the investments tab of the assets account. This will be reflected in balance sheet. The transaction is classified in the investing activity.
2. Falcon borrows from Wildcat and signs Notes payable this will have effects in balance sheet liability account. This is financing activity.
3. Falcon receives Dividend revenue from Wildcat. This will be reflected in income statements as revenue. It will operating activity.
4. Falcon provides services to Wildcat , this is reflected in income statement as revenue. This will appear under operating activity.
5. Falcon pays interest on the borrowings to Wildcat. This is income statement items and is an expense. It belongs to financing activity.
Answer:Double-entry bookkeeping, in accounting, is a system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit.
Explanation:
Answer:
$113,465
Explanation:
Calculation to determine difference in total dollars that will be paid to the lender under each loan
First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month
$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})
PMT = $804.62
Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month
$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})
PMT = $ 978.87
Now let determine the Total difference
Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)
Total difference= $113,465
Therefore difference in total dollars that will be paid to the lender under each loan is $113,465
Answer:
The correct answer is 3.
Explanation:
Giving the following information:
Your coin collection contains fifty-four 1941 silver dollars. These coins have appreciated at a 10 percent annual rate.
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
i= 0.10
PV= 54
n= 2060 - 1942= 119
FV= 54*1.10^119= 4,551,172.47
Answer:
She will receive $3,494.95 per month.
Explanation:
Jennifer's pension plan is an example of a sinking fund.
A sinking fund is an account that earns compound interests and into which periodic payments are also made.
The formula for calculating the future value of payments in a sinking fund account is given as:
where:
FV = Future value
PMT = periodic payment = $300
r = interest rate in decimal = 7% = 0.07
n = compounding period per year = monthly = 12
t = number of years compounded = 40
hence:
∴FV = $838,786.8
Finally, we are asked to calculate the amount she will be paid per month in a 20-year payout period, and this is shown below:
20 years = 12 months × 20 = 240 months
Therefore, amount to be paid in a 240 month period =
future value ÷ total number of months 838,786.8 ÷ 240 = $3,494.95
