Carissa Communications reported the figures from its adjusted trial balance and from its multi-step income statement for its first year of business, which ended on July 31, 2018
Expenses Accounts Payable Common Stock Notes Payable, long-term Merchandise Inventory Administrative Expenses $ 18,400 12,500 1,900 30,000 3,400 $ 3,500 Cost of Goods Sold 1,700 Equipment, net 4,600 Accrued Liabilities 5,855 Net Sales Revenue 1,500 Accounts Receivable 1,300 Interest Expense 3,000 Carissa Communications Income Statement Year Ended July 31, 2018 $30,000 18,400 Net Sales Revenue Cost of Goods Sold Gross Proft Operating Expenses 11,600 Selling Expenses Administrative Expenses Total Operating Expenses 1,700 3,000 4,700 Operating Income Other Income and (Expenses) 6,900 (55) Interest Expense (55) Total Other Income and (Expenses) 6,845 Net Income (Loss) Carissa Communications Statement of Retained Earnings Year Ended July 31, 2018 Retained Earnings, August 1, 2017 Retained Earnings, July 31, 2018 Balance Sheet July 31, 2018 Assets Liabilities Stockholders' Equity
Requirement 1.
Prepare Carissa Communications's statement of retained earnings for the year ended July 31 2018 .
Requirement 2.
Prepare Carissa Communications's classified balance sheet at July 31 2018.
Answers
Answer:
1. Carissa Communications' Statement of Retained Earnings for the year ended July 31, 2018:
Retained Earnings, July 31, 2017 $0
Net Income (Loss) 6,845
Retained Earnings, July 31, 2018 $6,845
2. Carissa Communications' Classified Balance Sheet as of July 31, 2018:
Assets:
Current Assets:
Cash $ 3,500
Accounts Receivable 3,000
Merchandise Inventory 1,300
Total Current Assets $7,800 $7,800
Long-term Assets:
Equipment, net 12,500 $12,500
Total Assets $20,300
Liabilities + Equity:
Current Liabilities:
Accounts Payable 1,900
Accrued Liabilities 5,855
Total Current Liabilities $7,755 $7,755
Long-term Liabilities:
Notes Payable, long-term 3,400
Total Liabilities $11,155
Stockholders' Equity:
Common Stock 2,300
Retained Earnings 6,845
Total Stockholders' Equity 9,145 $9,145
Total Liabilities + Equity $20,300
Explanation:
a) Data and Calculations:
1. Adjusted Trial Balance for its first year of business, which ended on July 31, 2018
Cash $ 3,500
Cost of Goods Sold $ 18,400
Selling expenses 1,700
Equipment, net 12,500
Accounts Payable 1,900
Accrued Liabilities 5,855
Common Stock 2,300
Net Sales Revenue 30,000
Notes Payable, long-term 3,400
Accounts Receivable 3,000
Merchandise Inventory 1,300
Interest Expense 55
Administrative Expense 3,000
Total $43,455 $43,455
2. Carissa Communications Income Statement Year Ended July 31, 2018
Net Sales Revenue $30,000
Cost of Goods Sold 18,400
Gross Profit 11,600
Operating Expenses
Selling Expenses 1,700
Administrative Expenses 3,000
Total Operating Expenses 4,700
Operating Income 6,900
Interest Expense (55)
Net Income (Loss) $6,845
An adjusted trial balance is termed as an internal report that shows all of the current general ledger financial reporting balances.
After adjusting entries have been made, the adjusted trial balance is prepared to show updated balances.
An income statement is referred to as the statement that records the cash inflow and outflow transactions in the company labeled as the debit and credit. Debit is whatever the cash comes and credit is whatever the cash goes out.
The adjusted trial balance, income statement, balance sheet, and retained earnings have been attached below.
To know more about the recording of the various financial report and data, refer to the link below:
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Related Questions
Elijah is trying to manage himself more effectively. He knows that he should empty his head, but which of the following actions will help him to do that?
a. Prioritizing all of his ideas and activities so that he knows which ones he should focus on first.
b. Listing every commitment he currently has, whether it is big or small.
c. Setting up a system of buckets to capture all of his ideas. These buckets could include a cell phone organizer, paper and pencil, and baskets for sorting mail.
d. Delegating projects to his employees and others who can and will take on some of his responsibilities.
Answers
Answer:
The correct answers are:
a.) Prioritizing all of his ideas and activities so that he knows which ones he should focus on first.
d.) Delegating projects to his employees and others who can and will take on some of his responsibilities.
Explanation:
Elijah's goal is to empty his head. This means that Elijah wants to reduce the burden of all the unmet tasks or expectations on him, therefore, whatever activities that are our choices will be activities that are aimed at freeing up his schedule, and the most appropriate choices are:
a.) Prioritizing all of his ideas and activities so that he knows which ones he should focus on first. This will make him focus on important tasks and remove the burdens of less important tasks, hence "emptying his head"
d.) Delegating projects to his employees and others who can and will take on some of his responsibilities. Delegation is a very effective way of reducing workload and stress. Tasks are given to employees, and all he does is to get reports and updates. This will help him free-up his head.
Lucian is a recent college graduate and is relatively new at your firm. He has been asked to write a report on a customer site visit for his supervisor, and he is unclear as to what should be included in the report and the appropriate style of writing. He asks you for help. What suggestions can you provide Lucian as he begins to write his report?
Answers
Answer:
Lucien should write the report in the below mentioned format
Customer Company Name
Customer Visit Participants
Date and Place of Customer Visit
Customer Background/Profile/Situation
Main Report ( It includes Customer challenges and other customer visit details)
Extra Q&A
Customer Visit Insights
Action items
In order to formulate strategies that align with the mission some of the activities the organization will need to perform are
Answers
Complete Question:
In order to formulate strategies that align with the mission some of the activities the organization will need to perform are?
Group of answer choices
A. Know their core competencies.
B. Assess internal strengths and weaknesses.
C. Examine the external environment.
D. Analyze competitors.
E. All of these should be considered when formulating strategies.
Answer:
E. All of these should be considered when formulating strategies.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
In order to formulate strategies that align with the mission some of the activities the organization will need to perform are;
1. Know their core competencies: this involves identifying your strengths such as knowledge, technology, underlying skill, experience, ability or process that enables you to perform exceptionally and provide a unique set of products or services that meets the needs of your customers.
2. Assess internal strengths and weaknesses: it gives an organization certain ADVANTAGES, edge and disadvantages in meeting the needs of various customers by analyzing their strengths, weaknesses, opportunities and threats (SWOT).
3. Examine the external environment: this involves examining and identifying all the factors outside of an organization that affects its performance such as customers, government policies, competitors etc.
4. Analyze competitors: organization should ensure they are always a step ahead of the their competitors in the industry.
Jeffreys Company reports depreciation expense of $52,000 for Year 2. Also, equipment costing $176,000 was sold for a $11,200 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
a. $72,800.
b. $40,000.
c. $51,200.
d. $52,000.
e. $28,800.
Answers
Answer:
a. $72,800
Explanation:
Note: This is an incomplete question as the concluding parts are gotten from the internet.
Accumulated depreciation - equipment
year 2 $476,000, year 1, $560,000
To get cash received from the sale of the equipment, we will calculate it as
= Change in accumulated depreciation - loss on sale of equipment,
Where;
Change in accumulated depreciation = Year 1 balance - Year 2 balance
= $560,000 - $476,000
= $84,000
Whereas the loss on sale of equipment is $11,200
Therefore;
Cash received = $84,000 - $11,200
= $72,800
1. John Jamison wants to accumulate $75,563 for a down payment on a small business. He will invest $35,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal
Answers
Answer:
10 years.
Explanation:
The time period, N for John to reach his goal can be determined using a financial calculator as follows :
FV = $75,563
PV = - $35,000
PMT = $ 0
R = 8.00 %
P/YR = 1
N = ?
Using a financial calculator, the time period, N for John to reach his goal is 10 years.
The Baldwin company will sell 100 units (x1000) of capacity from their Baker product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Baldwin company will sell the capacity for 35% off. How much do they receive when the capacity is sold? Select: 1Save Answer $3,400,000 $1,870,000 $1,190,000 $2,210,000
Answers
Answer: $2,210,000
Explanation:
From the question, we are informed that the Baldwin company will sell 100 units (x1000) of capacity from their Baker product line and that each unit of capacity is worth $6 plus $4 per automation rating.
We are further told that the Baldwin company will sell the capacity for 35% off. The amount they'll receive when the capacity is sold will be:
The cost per unit will be
= 6 + (4 × 7)
= 34
The worth of the capacity will now be:
= 100000 × 34
= 3,400,000
The amount received will be:
= 3400000 × (1-35%)
= 3400000 × 0.65
= $2,210,000
Freeman Motors, a motorcycle manufacturer, had the following contingencies. Determine the appropriate accounting treatment for each of the situations Freeman is facing. a. Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit. Freeman's attorneys estimate the potential loss will be $4,500,000. ▼ Describe the situation in a note to the financial statements. Do not disclose. Record an expense and a liability based on estimated amounts. b. Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous. ▼ Describe the situation in a note to the financial statements. Do not disclose. Record an expense and a liability based on estimated amounts. c. Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be $75,000.
Answers
Answer:
a. Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit. Freeman's attorneys estimate the potential loss will be $4,500,000.
Describe the situation in a note to the financial statements.Since the event is possible but not likely, it should be disclosed in the footnotes of the financial statements.
b. Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous.
Do not disclose.Since this is a frivolous lawsuit, there is no need to disclose it.
c. Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be $75,000.
Record an expense and a liability based on estimated amounts.Since the negative outcome is probable and you were able to quantify your losses, you must record the expense for $75,000 and include the amount as a current liability.
If the economy starts at O, a decrease in the money supply moves the economy Group of answer choices
Answers
Answer: c. to Q in the long run.
Explanation:
A decrease in money supply will mean a decrease in the amount that households have for consumption. This will decrease Aggregate demand and force it to the left where it will then intersect with the SRAS at point R.
This will mean that the economy is in a recessionary gap as they are producing less than they can.
In the long run, the reduced economic activity will mean that some costs of factors of production like wages will be lower so more companies will hire labor and produce more which will increase the production in the economy.
This will move the SRAS curve to the right where it will intersect with the AD curve and the LRAS curve at point Q.
the linen department had net sales of $80,000. there was a 2% loss, and the gross margin was 46%. determine the operating expenses of the department and express the result in dollars and as a percentage
Answers
Answer:
48%
Explanation:
Net sales of $80,000
A 2% loss
Gross margin was 46%
Profit Loss = 2% - $80,000
= 0.02 * $80,000
= $1,600
Gross margin = 46% * Profit loss
= 0.46 * $80,000
= $36,800
Net Profit = Gross Margin - Operating Expenses
-$1,600 = $36,800 - Operating Expenses
Operating Expenses = $36,800 + $1,600
Operating Expenses = $38,400
Operating Expenses % = Operating expenses / Net sales
Operating Expenses % = $38,400 / $80,000
Operating Expenses % = 0.48
Operating Expenses % = 48%
A company's income statement showed the following: net income, $136,000 and depreciation expense, $33,600. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,300; merchandise inventory increased $21,800; and accounts payable increased $5,300. Calculate the net cash provided or used by operating activities.
a. $137,000.
b. $183,900.
c. $140,300.
d. $173,500.
e. $206,500.
Answers
Hope this helps pass
Cash flow from operating activities on the basis of the given income statement is $164,400.
What is the net cash provided?[tex]= \text{Net income} + \text{Depreciation} + \text{Decrease in receivables} - \text{Increase in inventory} + \text{Increase in accounts payable}[/tex]
[tex]= $136,000 + $33,600 + $11,300 - $21,800 + $5,300[/tex]
[tex]= $164,400[/tex]
Because depreciation is not a cash item, net cash flow supplied or consumed by operational activities equals net income plus depreciation, plus the reduction in accounts receivable minus the rise in product inventory plus the increase in accounts payable.
The given options do not match the calculated option. I believe $164,400 is the net cash.
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When the value of one currency increases relative to the value of another currency, it has experienced:
Answers
Answer:
Exchange rate appreciation
Explanation:
Exchange rate appreciation is when there is an increase in the value of country 'A's currency when compared with county 'B' s currency. A country's exchange rate would appreciate if it is experiencing higher economic growth, fewer or lower rate of inflation etc.
The effect of exchange rate appreciation is that the value of the currency for a country whose exchange rate appreciate against the other country will be higher hence makes import cheaper for them whereas export becomes more expensive. There could also be a reduction in inflation for a country whose currency appreciate because most firms would usually cost costs and also because import prices are falling.
A company's strategy evolves over time as a consequence of: A. the need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations. B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C. the need to abandon some strategy features that are no longer working well. D. the need to respond to the newly initiated actions and competitive moves of rival firms. E. All of these.
Answers
Answer: All of the above
Explanation:
The strategy of a company has to do with how the business will be run by the management and.the necessary action that have been put in place to achieve their goals.
A company's strategy evolves over time as a consequence of need to keep strategy in step due to evolving market conditions, and evolving customer needs, proactive efforts of an organization to fine-tune and also improve its strategy and the need to respond to competitive actions by rivals.
Therefore, all of the above is correct.
Which of the following questions does the organization's mission statement answer?
A. What are our long-term strategies?
B. What are our long-term goals and objectives?
C. How do we operate in the existing environment?
D. What do we want to become?
E. All of these are answered by the mission statement
Answers
Answer:
D. What do we want to become?
Explanation:
A mission statement refers to a statement in which the existence reason could come why it is established, its entire objectives, its products and services that are provided to the customers, and at last the location where they deal
So as per the given options the option D is correct as it represent the mission statements and the hence the same is to be considered
Therefore all the other options are wrong or incorrect
If you deposit $9000 into a bank account that pays 0.25% per month, what the amount your account will be worth after 2 years?
Answers
Answer:
$9,045.11.
Explanation:
The value of the investment, fv after 2 years can be determined as fallows :
PV = - $9000
Pmt = $0
r = 0.25%
n = 2 × 12 = 24
p/yr = 12
FV = ?
Using a financial calculator, the value of the investment, fv is $9,045.11.
Assume that in January 2017, the average house price in a particular area was $308,700. In January 2000, the average price was $198,300. What was the annual increase in selling price?
Answers
Answer:
2.64%
Explanation:
It requires application of basic time value of money function
n = 17
FV = $308,700
PV = $198,300
FV = PV * (1 + r)n
$308,700 = $198,300 * (1 + r)^17
$308,700 / $198,300 = ($198,300 * (1 + r)^17) / $198,300
1.556732 = (1 + r)^17
Taking 17th root of equation
1.0264 = 1 + r
r = 2.64%
How many pennies would be needed, if formed into a single line, would be needed to reach the Moon?
Answers
Answer: 242,288,640,000 pennies
Explanation:
A penny is about 1/16 of an inch and the distance between the Earth and the moon is 239,000 miles.
The distance needs to be converted to inches.
1 mile is about 5,280 feet and 1 feet is about 12 inches.
239,000 miles in inches is;
= 239,000 * 5,280 * 12
= 15,143,040,000 inches.
A penny is 1/16 of an inch so it would take;
= 15,143,040,000 * 16
= 242,288,640,000 pennies
______________ give government the power to block certain mergers, and in some cases, to break up large firms into smaller ones.
Answers
Answer:
Antitrust law
Explanation:
Antitrust law are a collection of federal and state laws which is meant to create a conducive atmosphere for businesses to operate, such that there would be healthy competition among businesses. This law cut across all sectors such as transportation, health, manufacturing industries etc.
Examples of law promulgated for antitrust are the Sherman act, the Clayton act; all of which are responsible for the prohibition of certain practises by business such as illegal price fixing and corporate mergers which could hinder a market from being competitive, hence break them into smaller units.
Coca-Cola has expected EPS of $2.1. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.49 21.37 Part 1 What is the intrinsic value based on the lowest P/E ratio? Part 2 What is the intrinsic value based on the highest P/E ratio? Part 3 What is the intrinsic value based on the average P/E ratio?
Answers
Answer:
The Intrinsic value is calculated by multiplying the Earnings per share by the P/E ratio.
1. The lowest P/E ratio is 21.37 so the intrinsic value is;
Intrinsic value = 2.1 * 21.37
= $44.88
2. Highest P/E ratio is 23.49
Intrinsic value = 2.1 * 23.49
= $49.33
3. The average P/E ratio is;
= (22.07 + 23.49 + 21.37)/3
= 22.31
Intrinsic value = 2.1 * 22.31
= $46.85
The following are the assets and liabilities of Jill Carlson Realty Company, as of January 31, 2018. Also included are revenue, expense, and selected stockholders' equity figures for the year ended on that date (amounts in millions):
Answers
Complete Question:
Apply the accounting equation; construct a balance sheet) The following are the assets and liabilities of Jill Carlson Realty Company, as of January 31, 2018. Also included are revenue, expense, and selected stockholders' equity figures for the year ended on that date (amounts in millions):
Complete Table is in the attachment given at the end of the answer.
Requirement 1.
Construct the balance sheet of Jill Carlson Realty Company at January 31, 2018. Use the accounting equation to compute ending retained earnings.
Answer:
Balance Sheet of Jill Carlson Realty Company, as of January 31, 2018
ASSETSCurrent Assets
Cash $57.2
Receivables $0.5
Non Current Assets
Investment Assets $79.4
Property, Plant and Equipment $1.6
Other Assets $9.3
Total Assets $148
LIABILITIES
Current Liabilities $2.9
Non Current Liabilities $102.6
Total Liabilities $105.5
EQUITY
Common Stock $39.2
Closing Retained Earnings (Step1) $3.3
Total Equity $42.5
Step 1: Find Closing Retained Earnings
As we know that:
Closing Retained Earnings = Total Assets - Total Liabilities - Common Stock
Here
Total Assets is $148 million
Total liabilities is $105.5 million
Common Stock is $39.2 million
By putting these values in the above equation, we have:
Closing Retained Earnings = $148 million - $105.5 million - $39.2 million
Closing Retained Earnings = $3.3 million
Aurora Enterprises incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler offers to buy 3,500 units for $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming Aurora has adequate manufacturing capacity, it should
Answers
Answer:
Aurora should reject the offer because it would lead to a loss of (-$11,025)
Explanation:
Given the information above, we can sum up the variable costs to be;
Variable costs = $38 + $1.15
= $39.15
Therefore;
Gain or loss would be;
= [3,500 × $36] - [3,500 × $39.15]
= $126,000 - $137,025
= -$11,025
With regards to the above, Aurora should reject the offer because it will lead to a loss of $11,025
A company issues $15200000, 9.8%, 20-year bonds to yield 10% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14939182. Using effective-interest amortization, how much interest expense will be recognized in 2017
Answers
Answer:
$1,494,026.16
Explanation:
journal entry to record issuance:
January 1, 2017, bonds issued at discount
Dr Cash 14,939,182
Dr Discount on bonds payable 260,818
Cr Bonds payable 15,200,000
the first coupon payment:
amortization of bond discount = (14,939,182 x 0.1/2) - 744,800 = 2,159.10
Dr Interest expense 746,959.10
Cr Cash 744,800
Cr Discount on bonds payable 2,159.10
the second coupon payment:
amortization of bond discount = (14,941,341.10 x 0.1/2) - 744,800 = 2,267,06
Dr Interest expense 747,067.06
Cr Cash 744,800
Cr Discount on bonds payable 2,267,06
total interest expense for 2017 = $746,959.10 + $747,067.06 = $1,494,026.16
you cannot meet the assignment deadline and complete other small tasks you have. what would you most likely do
Answers
Answer:
focus on and finish the assignment which has the deadline
Explanation:
In a scenario such as this one, you should focus on and finish the assignment which has the deadline. This is because unlike the other tasks, this assignment needs to be finished before a set date, otherwise it will become invalid and the client/boss will not accept it and that can bring serious consequences. The other small tasks can be completed later once the assignment has been delivered.
Which of the scenarios best reflects the meaning of the term inflation targeting? a) In anticipation of the upcoming election, the chairman of the Federal Reserve lowers interest rates, hoping to win support for the incumbent president. b) A central bank is expected to achieve a 3% annual inflation rate. c) Hoping to reduce inflation to improve public opinion, the Federal Reserve decides to lower interest rates. d) A local shopping mall offers an "inflation discount," which compensates for the recent increase in prices, in the hopes of targeting savvy consumers.
Answers
Answer:
b) A central bank is expected to achieve a 3% annual inflation rate
Explanation:
Inflation targeting is a type of monetary policy where the central bank of a country sets an inflation rate as its goal or target.
"Your company currently is performing all functions in-house and is now considering creating a VMS. What is true about VMS's
Answers
Question options:
create inefficiencies
take advantages of others strengths
decrease control for your company
typically increase costs
All are true
All are false.
Answer:
take advantages of others strengths
Explanation:
Vendor management system abbreviated VMS is software used by companies in managing staff, temporary and permanent. Among other benefits such as cost monitoring and reduction, vendor performance tracking, process improvement and management, VMS also allows the company outsource and utilize the strengths of others such as utilizing competencies and skills that are not in-house which can be cost effective
The true statement about the VMS is that it takes advantage of others' strengths.
What is VMS?This refers to the vendor management system which is used by corporations to manage their staff and also to monitor costs and improve general processes.
Hence, from the complete question, there are some answer choices and from there we can surmise that the correct answer is that the VMS takes advantage of others' strengths.
This conclusion was gotten because the company is said to be performing all functions in-house and want to create a VMS which would effectively make use of the strengths of others to create an efficient system.
Read more about VMS here:
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One year ago, you purchased 100 shares of a stock. This morning you sold those shares and realized a total return of 8.2 percent. Given this information, you know for sure the:
Answers
Answer: e. sum of the dividend yield and the capital gains yields is 8.2 percent
Explanation:
The return of 8.2% that was realized is the sum of the dividend yield and the capital gains yield.
The dividend yield refers to the income earned from dividends issued by the company whose stock you owned divided by the stock price.
The capital yield is the change in price since you bought the stock for instance, buying the stock at a price of $15 and it is now worth $20.
These two yields will combine to give you the return of 8.2% that you realized.
HR can be a strategic partner by providing aspirations to the company and functioning as an inspiration for strategic planning. What knowledge is it critical for HR managers to have if they are to perform this role.
Answers
Answer:
Business knowledge
Explanation:
Business knowledge is defined as the extensive experience and insight an individual has into business dynamics, customer preferences, staff skills and potential, and the business's general direction.
For a HR staff to be a strategic partner and provide aspirations to the company and function as an inspiration for strategic planning, he will need to use a good business knowledge.
This will enable him provide valuable insights on how the business can achieve its goals and objectives.
He will have the ability to ensure continuous business growth by identifying opportunities for financial success.
"A customer in the 28% tax bracket is considering the purchase of a municipal bond yielding 9% or a corporate bond yielding 12%. Both bonds have similar maturities and credit ratings. Which statement is TRUE?"
Answers
Answer: The effective yield on the municipal bond is higher
Explanation:
The options for the question are:
A. The effective yield on the municipal bond is higher
B. The effective yield on the corporate bond is higher
C. Both effective yields are equivalent
D. The coupon rates for each bond are necessary to determine the effective yield.
From the question, we are informed that a customer in the 28% tax bracket is considering the purchase of a municipal bond yielding 9% or a corporate bond yielding 12% and that both bonds have similar maturities and credit ratings.
Out of the options that are given, the option that is true is that the effective yield on the municipal bond is higher. This is because the equivalent municipal yield will be more than the Corporate bond which yields 12%.
Which of the items below does not appear on the work sheet? (Points: 2)
a) adjusting entries
b) the unadjusted trial balance
c) closing entries
d) the drawing account
Answers
Answer: c) closing entries
Explanation:
An Accounting worksheet is simply used to be able to draft accounting information and make reports from them. As such you will find them with adjusting entries, unadjusted trial balance and the drawing account.
Closing entries are used to close out the books at then end of an accounting period and so will not appear on an accounting worksheet.
An issue of common stock has just paid a dividend of $2.00. Its growth rate is equal to 4%. If the required rate of return is 7%, what is its current price
Answers
Answer:
The answer is $69.33
Explanation:
The formula to solve this is:
P = D1/r - g
P is the Curren price of the common stock
D1 is the future dividend payment
r is the rate of return
g is the growth rate
D1 is $2 x 1.04 = $2.08
r = 7% or 0.07
g= 4% or 0.04
2.08/0.07-0.04
2.08/0.03
=$69.33.
Therefore, the current share price of the common stock is $69.33
Calculate the monthly mortgage payment with the following conditions: $230,000 borrowed, 6.35% interest, 30 year term.
Answers
Answer:
Monthly installment = $1,431.20
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly equal installment is calculated as follows:
Monthly equal installment= Loan amount/Monthly annuity factor
Loan amount = 230,000
Monthly annuity factor = =( 1-(1+r)^(-n))/r
r- Monthly interest rate (r) = 6.35%/12= 0.529%
n- Number of months ( n) = 30 × 12= 360
Annuity factor = ( 1- (1.00529)^(-360)/0.00529=
Monthly installment= 230,000 /160.704
Monthly installment = $1,431.20