Answer:
Benton Island, Inc.
Operating Activities Section of the Statement of Cash Flows for the year ended December 31, 2018 (using the direct method):
Cash from customers $80,000
Cash to Suppliers -85,000
Cash to Employees -50,000
Income Taxes -11,000
Net Cash flow from Operating -66,000
Explanation:
1. The operating activities section shows inflows and outflows of cash resulting from a company's key operating activities. Operating activities are different from the investing and financing activities of a firm. The investing activities section shows the investments in assets and other entities made by the company, while the financing activities section shows how the company is funded and the repayments made to fund providers in principal and interest.
2. The operating activities section can be prepared using two methods: the direct and the indirect methods. The direct method starts by identifying the cash receipts and payments from operating activities. The indirect method starts with the operating income and makes adjustments for non-cash flows, like Depreciation.
<u>Solution and Explanation:</u>
The Journal Entries in the books of Brock's water enterprise is as follows :-
Date Particulars and details Debit($) Credit($)
Jan 5, 2018 Intangible Assets - Lease 905861
Lease Payable 905861
(Being Record the Lease)
Jan 5, 2018 Lease Payable 125000
Cash 125000
(Being Record Down Payment)
Dec 31, 2018 Amortization Expenses ($905861divide 10) 90586
Accumulated Amortization 90586
(Being Record the amortization)
Jan 5, 2019 Lease Payable 
62531
Interest Expenses 
62469
Cash 125000
(Being Record the Second Lease Payment)
<span> <span>Solution:
A = P(1+r)^n
where,
A = amount
P = principal
r = rate of interest
n = number of years
Putting values in the formula,
8850 = 2750(1+0.08)^n
8850/2750 = (1+0.08)^n
log will be used to solve "n" as it is in the exponent form, which gives,
log(8850/2750) = n log(1+0.08)
By solving, we get n = log(8850/2750) / log(1+0.08)
Using financial calculator, value comes as 15.187 rounded to 15.19.
So, he will have to wait for 15.19 years to take holidays as it will take 15.19 years to make $8850 from $2750 @ 8% annual compounding.</span> </span>
bonds are basically known as
b)contracts
Answer:
Unrealized gain = $12,000
Explanation:
Security Cost A Fair value B Unrealized amount (B-A)
ABC $40,000 $55,000 $15,000
DEF $72,000 $65,000 -$7,000
XYZ $16,000 $20,000 <u>$4,000</u>
Total <u>$12,000</u>
So, the unrealized gain to be recorded is $12,000
