It is D. There are 12 months in a year and she needs to save atleast 9,000.
600x12=7,200
350x24=8,400
225x36=8,100
200x48=9,600
Answer:
a. $76,754
.38
b. 14%
c. $73,529
Explanation:
a. The computation of portfolio is given below:-
Risk Premium
= Required return - Risk free rate
= 10% + 4%
= 14%
Expected value of the payoff
= $40,000 × 1 ÷ 2 + $135,000 × 1 ÷ 2
= $87,500
Value of portfolio = $87,500 ÷ (1 + 14%)
= $76,754.39
b. The calculation of expected rate of return on the portfolio is shown below:-
= ($87,500 - $76,754.39) ÷ $76,754.39
= 14%
c. The calculation of risk premium is shown below:-
Risk premium = Required return - Risk free rate
Required return = 15%+4% = 19%
Expected rate of the payoff
= $40,000 × 1 ÷ 2 + $135,000 × 1 ÷ 2
=$87500
Value of portfolio
= $87,500 ÷ (1 + 19%)
= $73,529
Answer:
Date Accounts Titles & Explanation Debit Credit
Dec 31 Rent Expense $2,040
($6,120 *2/6)
Prepaid Rent $2,040
Dec 31 Deferred Revenue $525
Service Revenue $525
Dec 31 Salaries Expense $700
Salaries Payable $700
Dec 31 Supplies Expense $2,390
($3,100 - $710)
Supplies $2,390
Demon Deacons Corporation
Adjusted Trial balance
December 31, 2021
Accounts Debit$ Credit$
Cash 9,100
Account receivable 14,100
Prepaid rent 4080
Supplies 710
Deferred revenue 1,575
Salaries payable 700
Common stock 11,000
Retain earnings 5,100
Service revenue 45,245
Salaries expenses 31,200
Rent expenses 2,040
Supplies expenses <u>2,390</u> <u> </u>
Total $<u>63,620</u> $<u>63,620</u>
Prepaid rent = 6,120 - 2,040 = 4080
Supplies = 3100 - 2390 = 710
Deferred revenue = 2,100 - 525 = 1575
Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
Answer: $10,700
Explanation:
The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,
= Uncollectible Amount written off + Closing Balance - Opening Balance.
Now the balances are as follows,
Opening Balance for Year 2 = 4,500
Closing Balance for Year 2 = 6,800
Uncollectible Amount written off during Year 2 = 8,400
Calculating therefore,
= 6,800 + 8,400 - 4,500
= $10,700
Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.
