Answer:
D. Cash is debited $5,000; capital is credited $5,000.
Explanation:
The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides. Cash is an asset, while capital is equity.
An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.
Answer:
$4,000
Explanation:
Intangible assets are usually amortized using the straight line depreciation method.
Depreciation expense = ( Cost - Salvage value) / number of years
= ($50,000 - $10,000)/ 10 = $4000
I hope my answer helps you.
Answer:
Explanation:
The market value of debt is the present value of all future cash flows in servicing the debt.
we need to identify the present value of the future cash flows as follows
Year no of receipts Cash flow Discount factor present value
1-7 7 70 5.1185 358.296
7 1 1000 0.5649 564.926
Present Value 923.222
Annuity= P=R(1+(1+i )^-n) /i
Annuity= P=70(1+(1+8.5%)^-7/8.5% = 5.1185
Compound = S=P(1+i)
Compound =P=1000/(1+8.5%)^7 = 0.5649
the value of the bond is = 923.222
Answer:
The correct option is (C)
Explanation:
Efficiency wages are higher than market wages that are paid by employers to motivate employees so that they perform better and their efficiency and productivity increase. Efficiency wages are directly proportional to productivity. The more the efficiency wage, higher will be labor productivity.
Efficiency wages are lie above equilibrium level. It helps in reducing labor turnover, improve labor efficiency and attract skilled employees.
Answer:
Option "C" is the correct answer to the following question.
Explanation:
If the Toyota company was unable to supply vehicles due to unexpected acceleration problems, it reflected both legal and ethical losses. On the moral side, the Toyota company will suffer a loss of reputation, assuming the Toyota company was misrepresenting, while the Toyota company will also face legal problems.
