Equipment $ 7,000 Office supplies $ 2,100 Salaries expense 3,600 Rental revenue 1,100 Consulting revenue 15,000 Advertising expense 520 Cash 9,200 Prepaid insurance 1,600 Utilities expense 320 Accounts payable 3,220 Note payable 3,000 Note receivable 3,100 Accounts receivable 4,100 Rent expense 2,600 A. Lopez, Withdrawals 2,600 Unearned revenue 420 Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of owner’s equity. The owner’s capital account balance at February 28 was $0, and the owner invested $14,000 cash in the company on March 1. 3. Prepare a March 31 balance sheet. Hint: Use the owner’s capital account balance calculated in part 2.

Answers

Answer 1

Answer:

Required: 1.  Income statement for the month end March 31 .

                                                      $                $

Rental revenue                                           1,100

Consulting revenue                                 15,000

Total Revenue                                          16,100

Less Expenses :

Salaries expense                     3,600

Advertising expense                  520

Utilities expense                         320

Rent expense                          2,600      (7,040)

Net Income/(loss)                                     9,060

Required: 2. Statement of owner’s equity for the month end March 31.

Beginning Balance                                      $0

Capital                                                      $14,000

Add Profit earned during the month      $ 9,060

Less A. Lopez, Withdrawals                   ($2,600)

Ending Balance                                      $20,460

Required: 3. Balance Sheet as at March 31.

Non Current Assets

Equipment                                               $ 7,000

Total Non Current Assets                       $ 7,000

Current Assets

Office supplies                                         $ 2,100

Cash                                                        $ 9,200

Prepaid insurance                                    $1,600

Note receivable                                      $ 3,100

Accounts receivable                                $4,100

Total Current Assets                             $20,100

Total Assets                                           $27,100

Equity and Liabilities

Equity

Equity                                                     $20,460

Total Equity                                           $20,460

Liabilities

Accounts payable                                 $ 3,220

Unearned revenue                                  $ 420

Note payable                                        $ 3,000

Total Liabilities                                      $6,640

Total Equity and Liabilities                   $27,100

Explanation:

First prepare the Income statement to determine the profit earned during the year.

Then, include this profit in the statement of owners equity to determine the month end balance.

Lastly, prepare the balance sheet, remember to include the equity balance you have calculated.


Related Questions

Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1. Unrecorded interest accrued on savings bonds is $410.
2. Property taxes incurred but not paid or recorded amount to $800.
3. Unearned service revenue of $4,000 was collected in advance. By year end $700 was still unearned.
4. Prepaid insurance had a $750 debit balance prior to adjustment. By year end, 60 percent was still unexpired.
5. Salaries incurred by year end but not yet paid or recorded amounted to $650.

Answers

Answer:

1. Dr Interest Receivable 410

Cr Interest Revenue 410

2. Dr Property Tax Expense 800

Cr Property Taxes Payable 800

3. Dr Unearned Service Revenue 3,300

Cr Service Revenue 3,300

4. Dr Insurance Expense 300

Cr Prepaid Insurance 300

5. Dr Salaries and Wages Expense 650

Cr Salaries and Wages Payable 650

Explanation:

Preparation of Journal entries

1. Dr Interest Receivable 410

Cr Interest Revenue 410

2. Dr Property Tax Expense 800

Cr Property Taxes Payable 800

3. Dr Unearned Service Revenue 3,300

Cr Service Revenue 3,300

($4,000 – $700)

4. Dr Insurance Expense 300

Cr Prepaid Insurance 300

[$750 x (100%-60%)]

5. Dr Salaries and Wages Expense 650

Cr Salaries and Wages Payable 650

What are the 3 activities that took place during the forming stages

Answers

Explanation:

The three activities that took place in the forming stages are:

Team members introduce to each other, they share their backgrounds and information about their interests and experience and develop impressions towards each other. Team members come to know about each other strengths, interests, and challenges. Team members learn about the project they are doing work and they discuss the project's goals and they conceive about what contribution and role they are going to perform on the particular project.

At what percentage of credit card usage, does it start affecting your score in a negative way?​

Answers

Answer:

3%

Explanation:

ratio of 80 or 90 percent or more highly negative impact on your credit score.

Income generated by sales of foreign-produced goods in U.S. markets flows to foreign producers of these goods, and thus this income is subtracted from U.S. GDP.
a. True
b. False

Answers

Answer: True

Explanation:

Foreign produced goods being sold in the United States are considered to be Imports. Imports are a leakage to the GDP of a nation as they represent income which flows out of the economy to other countries.

For this reason this income is subtracted from US GDP.

Indeed the Expenditure method accounts for this by deducting it from US Exports.

Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 100 customers per hour. Use Exhibit 5.6. During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?

Answers

Answer:

the critical zone

Explanation:

So, we have the following information or data from the question/problem, they are:

=> In order to improve on the restaurant service and give more quality, customers data were collected in from Friday and Saturday nights which happens to be the local restaurant's busiest times of the week.

=> From the data collected it was shown that 75 customers arrive per hour for service.

=> After getting the data above the owners of the local restaurant estimated that they can serve on average about 100 customers per hour.

In order to improve on the restaurant service and give more quality, the utilization rate must be calculated. Therefore the utilization rate is arrival rate divided by service rate that is to say;

The utilization rate = arrival rate/ service rate.

The utilization rate = 75/100 = 0.75 = 75%.

The next step is to draw the diagram showing the relationship between rate of service utilization and service rate.

So, from the graph we have that with the 75%, the zone that it falls to is the CRITICAL ZONE.

Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000 Polishing $ 135,000 Product modification 600,000 Providing power $ 255,000 System calibration 500,000 Additional information on the drivers for its production activities follows. Grinding 13,000 machine hours Polishing 13,000 machine hours Product modification 1,500 engineering hours Providing power 17,000 direct labor hours System calibration 400 batches Job 3175 Job 4286 Number of units 200 units 2,500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng. hours 32 eng. hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH Problem 17-3A Part 5 Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)

Answers

Answer:

Craft Pro Machining

The overhead cost for each unit of the jobs:

                                    Job 3175        Job 4286

Number of units          200 units      2,500 units

Direct labor hours      500 DLH       4,375 DLH

Plantwide overhead rate = $371.28205

Overhead allocation $185,641.03   $1,624,358.97

Unit overhead cost    $928.21         $649.74

Explanation:

a) Data and Calculations:

Production Activity    Indirect Labor   Indirect Materials  Other Overhead Grinding                      $ 320,000

Polishing                      $ 135,000

Product modification     600,000

Providing power        $ 255,000

System calibration        500,000

Total overhead cost $1,810,000

Additional information on the drivers for its production activities follows.

Grinding                           13,000    machine hours

Polishing                          13,000    machine hours

Product modification        1,500     engineering hours

Providing power             17,000     direct labor hours

System calibration             400      batches

                                  Job 3175        Job 4286

Number of units          200 units      2,500 units

Machine hours            550 MH        5,500 MH

Engineering hours        26 eng. hours 32 eng. hours

Batches                         30 batches      90 batches

Direct labor hours      500 DLH       4,375 DLH   4,875 DLH

Plantwide overhead rate based on direct labor hours:

= Total overhead costs/Total direct labor hours

= $1,810,000/4,875

= $371.28205

Carolyn is looking over opinions based primarily on research studies. She has found that there are 31 of them in total. What organization is Carolyn researching?

Answers

Answer:

d. APB

Explanation:

Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?

These are the options for the question

a. CAP

b. AICPA

c. SEC

d. APB

We are informed Carolyn who is looking over published accounting opinions based primarily on research studies. The organization Carolyn researching is Accounting Principle Board.

APB( Accounting Principle Board) belongs to a body of American institute of Certified public accountant in US.

it was been run and organised by American Institute of Public Accountants. APB can be regarded as organization which is a forerunner of

Financial Accounting Standards Board. This APB usually offer discounts on professional training with them as well insurance on journal subscription to their member. They are good in offering research on Accounting and finance.

A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds $ 25 per pound 100 pounds to 3,999 pounds $ 24 per pound 4,000 pounds or more $ 23 per pound The cost to place an order is $40. Annual demand is 2,700 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time, and its total cost

Answers

Answer:

EOQ = 201 units

total cost = $66,007.35

Explanation:

we can calculate the EOQ using 2 different prices (it makes no sense to use $23 since the minimum order size is larger than annual demand):

EOQ = √[(2 x S x D) / H]

S = order costD = annual demandH = holding cost

$25 per unit

S = $45

D = 2,700

H = $25 x 25% = $6.25

EOQ = √[(2 x 45 x 2,700) / 6.25] = 197.18

$24 per unit

S = $45

D = 2,700

H = $24 x 25% = $6

EOQ = √[(2 x 45 x 2,700) / 6] = 201.25 ≈ 201 units

since both EOQs are higher than 100 units, then we must use $24 per unit

you have to make 2,700 / 201 = 13.43

total cost = (13.43 x $45) + (2,700 x $24) + (201 x $6 x 0.5) = $604.35 + $64,800 + $603 = $66,007.35

If merchandise is sold on account to a customer for $10,000, terms FOB shipping point, 1/10, n/30, what is the amount to be recorded as an accounts receivable on the date of the sale?
a. $10,000
b. $10,050
c. $9,950
d. none of the above

Answers

Answer: a. $10,000

Explanation:

The amount to be recorded as an Accounts Receivable on the date of the sale is the actual amount that the merchandise was sold for which is $10,000.

The discount of 1% if paid within 10 days will only apply if the customer pays within that time and if this is done, the discount will be deducted from the amount paid to the company and debited to the Sales discount account.  

Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. enforce the contract as is. b. allow the parties to rescind the contract. c. award damages to Global for the mistake. d. award damages to Flo for the mistake.

Answers

Answer:

b. Allow the parties to rescind the contract

Explanation:

Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States at a certain amount mentioned in the contract. However, Global Shipping Ltd. makes a mistake in calculating the costs. As a result, a contract price is equal to the amount that is $1,000 less than the true cost. Most likely, a court would allow the parties to rescind the contract.

Option b. is correct.

If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consumption will increase by _____. (Remember when we use APC versus MPC. Use only one for this question).

Answers

Answer:

$2,800

Explanation:

The computation of the increase in consumption is shown below:

= Marginal propensity to consume × rise in income

= 0.70 × $4,000

= $2,800

Hence, the consumption would be increased by $2,800

We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come

Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to twelve votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders’ shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,900,000 total shares currently outstanding, the original founder's family owns 52,725 shares. What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Answers

Answer:

34.25%

Explanation:

Votes per share = 12

Shares owned = 52725

Now we are to calculate the total value of the total number of of votes

Total votes = votes per share * shares owned

= 12*52725

Total = 632700

Value of votes of class B

Total shares outstanding - founders family shares

= 1900000 - 52725

= 1847275

The question requires us to calculate percentage of the founder's family votes to Class B votes

632700/1847275

= 0.3425

= 34.25%

A U.S. business sells milk to consumers in France. Which situation would
most likely cause demand for milk to decline in France?

A. A popular French nutrition author claims that milk is bad for
people's health.
B. French consumers expect the price for milk to increase in the
future.
C. Cheese and other products made from milk become more popular
in France
D. The French population grows steadily due to years of economic
prosperity

Answers

The situation that cause the demand for falling in france should be option A. A popular French nutrition author claims that milk is bad for people's health.

The reason why it cause demand for milk:

The various consumers believes on expert's suggestion to select between products. Marketers know this, and that is why they incorporate doctors and other professionals in advertisements. Should the popular nutrition author provides a negative opinion on milk products, the demand for milk in France will decline.

learn more about demand here: https://brainly.com/question/18282855

Answer:

A

Explanation:

Just took the quiz

According to the information above, which of the following is an appropriate analysis of the sales from the paper supplier? Select the correct answer below: From the data, the paper supplier had continued increasing sales over the 11 days. From the data, the paper supplier had continued decreasing sales over the 11 days. From the data, the paper supplier had decreasing sales from day 0 to day 5. After day 5, the sales increased. From the data, the paper supplier had increasing sales from day 0 to day 5. After day 5, the sales decreased.

Answers

Answer:

From the data, the paper supplier had decreasing sales over the 11 days.

Explanation:

The sales of the paper supplier have been declined over the 11 days. This might be because the demand for the paper is reduce due to lock down offices are closed and mostly work is done online on the soft copies. The paper supply has been increased and demand is decreased resulting in the price fall.

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Answers

Answer:

Acid-test ratio

Explanation:

Acid-test ratio I finance can also be regarded as quick ratio, it gives the measurement of how an organization can utilize her quick asset as well as cash to settle her liabilities at at that current period.

It can be calculated theoretically using this expresion;

Quick ratio= (Current Asset- Inventory)/Current Liabilities

It should be noted that acid-test ratio gives The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities. It enables to know shot term liquidity of a particular company.

Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement account that pays 6% interest. How much will be in his account after 40 deposits

Answers

Answer:

$92,8571.7937

Explanation:

The computation of the amount after 40 deposits is shown below:

= (((1 + interest rate)^number of years - 1) ÷ interest rate)× principal

= (((1 + 0.06)^40-1) ÷ 0.06) × $6,000

= $92,8571.7937

We simply applied the above formula and the same is to be considered

We considered all the things given in the question

A lawn company intends to use the sales of lawn fertilizer to predict the sales of lawn mower. The store manager estimates a probable six-week lag between fertilizer sales and mower sales. The pertinent data are

Answers

Answer:

Period ; Fertilizer ; Sales

1 ; 1.6 ; 10

2; 1.3 ; 8

3; 1.8 ; 11

4; 2.0 ; 12

5; 2.2 ; 12

6; 1.6 ; 9

7; 1.5 ; 8

8; 1.3 ; 7

9; 1.7 ; 10

10; 1.2 ; 6

Explanation:

Correlation is 0.960

R-Squared is 0.921

This is positive correlation which means both variables will move in same direction.

Slope is 6.153

Intercept is -0.649

Regression line will be formed with x intercept as fertilizers and y intercept as Lawn Mowers sold.

Between January 2010 and January 2016, U.S. employment increased by 12.1 million workers, but the number of unemployed workers declined by only 7.3 million. True or False: The labor force has remained unchanged.

Answers

Answer:

False, the labor forced increased

Explanation:

labor force = total number of people actively working (employed) or searching for jobs (unemployed)

lets say L = the total labor force in 2010

by 2016, L had increased by 12.1 million and decreased by 7.3 million

net change of L = 12.1 - 7.3 = 4.8 more million people were part of the labor force in 2016 than in 2010.

Retepson, Inc. has been in business for over 50 years. Retepson is best known for its Guide to Colleges line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space in the books for a fee. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether it needs to change its corporate culture. Which of the following, if true, supports the conclusion that Retepson's culture should emphasize innovation?
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
b) At the time that Retepson was founded, there was no easy way for students to find out basic information about a wide range of undergraduate programs.
c) Most large colleges have found that the wide circulation of the Guide to Colleges line of books makes it worthwhile to purchase additional advertising space.
d) Retepson's sales force has been able to prevent imitators from duplicating its success.
e) Students seeking admission to selective colleges often adopt innovative approaches to their application essays in order to stand out from the group of applicants.

Answers

Answer:

a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.

Explanation:

when we say innovation what we mean is a new idea, a new method, or a new way of doing things.

option A is the answer because using the internet to search for information is a form of innovation that has would bring about immense amount of changes from the former way of doing things. the internet itself is an innovative medium and it serves different purposes.

if anyone with internet can easily access information, then such an innovative ideas should be emphasized

Which of the following statements would be most likely to minimize expected fixing costs? a. A machine should always be calibrated at the midpoint between the upper and lower spec limits. b. A machine should be calibrated closer to the upper spec limit than the lower spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low. c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.

Answers

Answer: c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.

Explanation:

If the cost of fixing output that is too high is greater than the cost of fixing output that is too low then it make sense to calibrate the machine closer to the lower spec limit.

This way if the machine produces less output than is required, it can be fixed at a lower cost than if the machine had been set to the upper spec and produces output that is too high.

What is a "closing balance?
a.) The amountof money you have at the end of the statement period
b.)The amount of money you have when you close your account
c.)The amount of money you owe at the end of the statement period
d.)The amount of money waiting to be transferred out of your account

Faster pls​

Answers

Answer:

The answer is A

Explanation:

A closing balance is the amount of money a business has at the end of a specific time period.

All against Common Sense. Back in mid 80s, the US economy was very bad. It was much worse than it is now. At that time, to the surprise of many people, US automakers raised the prices of their cars. The common sense says that when the sales are slow, we lower prices and offer better deals to customers. Why do you think that the US car manufacturers increase the prices?

Answers

Answer:

Explanation:

This most likely happened because in the 80's the economy was so bad that even by lowering their prices the middle-class families would still not be able to afford to buy a car. The only individuals able to afford a car would be those who are wealthy. Therefore, by increasing prices and targetting wealthy individuals, the US car manufacturers could become profitable with much fewer sales and prevent the manufacturing plant from going under. Since wealthy individuals would not mind much the increased prices because they can still afford it without making much of a dent in their wealth.

Crane Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $140,000, $240,000, and $54,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,000, machine hours 24,000, and number of inspections 1,200. Compute the overhead rate for each activity. Machine setups $ per setup Machining $ per machine hour Inspections $ per inspection

Answers

Answer:

1. $70 per set up

2. $10 per machine hour

3. $45 per inspection

Explanation:

With regards to the above,

Compute the overhead rate for

1. Machine set ups

= Estimated annual overhead cost / Estimated annual Number of setups

Estimated annual overhead costs = $140,000

Estimated annual Number of setups = 2,000

= $140,000 / 2,000

= $70 per set up

2. Machining

= Estimated annual overhead costs / Estimated annual Machine hours

Estimated annual overhead costs = $240,000

Estimated annual Machine hours = 24,000

= $240,000 / 24,000

= $10 per machine hours

3. Inspection

= Estimated annual overhead costs / Estimated annual number of inspections

Estimated annual overhead costs = $54,000

Estimated annual number of inspections = 1,200

= $54,000 / 1,200

= $45 per inspection

a. Why do some price controls help create black markets?
b. What is a black market you have personally seen?

Answers

Answer:

Price ceiling creates black markets

Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.

When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.

So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits

b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.

Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices

Explanation:

Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?

Answers

Answer:

You should use the discount coupon to pay for the Chicago-Miami trip. Not considering the personal motivations for the trip, the coupon is worth $500. The cost of flying is $600, so you will only pay $100 yourself. You will be spending $900 + $1000 = $1,000 in total.

The opportunity cost of using the coupon is $350 (the cost of the round trip to Atlanta). Even if you add the $350 to the $1,000 expense, the total is $1,350, less than your $1,400 maximum budget.

Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g 2,510.)
Break-even point: $ _ _ _ _ _ _

Answers

Answer:

$50,940,000

Explanation:

Calculate the Bonita Beauty Corporation's break even point in sales dollars for the year 2017.

Please see as attached, detailed solution to the above question.

0.5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 3Item 3 0.5 points Agee Storage issued 37 million shares of its $1 par common stock at $12 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $10 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $16 per share? (

Answers

Answer:

Decline in Agee's total paid up capital is $14,000,000

Explanation:

Computation of decline in Paid-Up capital

Particulars                                        Amount

Cash paid for first repurchase      $10,000,000

(1 million shares*$10)

Value of first purchase                   $12,000,000

(1 million * $12                                                        

Benefit on first repurchase            $2,000,000

Cash paid for second repurchase = $16,000,000

(1 million shares * $16)

Value of second repurchase            $12,000,000

(1 million * $12)                                                            

Reduction in Total paid-in-capital   $14,000,000 ($2 million + $12 million)

A college student borrows $10,000 today at 10% interest compounded annually. Four years later, the student makes the first payment of $3000. Approximately how much money will the student still owe on the loan after the first payment

Answers

Answer:

$11,700

Explanation:

Calculation for how much money will the student still owe on the loan after the first payment

Using this formula

A=P(1+r/n)^nt

Where,

P =represent the principal amount $10,000

r =represent annual nominal interest rate 10/100= 0.1

n =represent the number of times the interest is compounded per year 1

t= represent number of years 4

Let plug in the formula

A=$10,000(1+0.1/1)^(1)(4)

A=$10,000(1.1)^4

A=$14,641

Since the student makes the first payment of the amount of $3,000 the amount of money that the student still owe on the loan after the first payment will be :

Loan Amount =$14,641-$3,000

Loan Amount =$11,641

Approximately $11,700

Therefore how much money will the student still owe on the loan after the first payment will be $11,700

The student still owes is $11,641.

The first step is to determine the future value of the loan:

FV = P (1 + r)^n

FV = Future value  P = Present value  R = interest rate  N = number of years  

$10,000(1.1)^4 = $14,641

The amount the student still owes = future value of the loan - amount paid

$14,641 - $3000 = $11,641.

To learn more about future value, please check: https://brainly.com/question/14640433

Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2016. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. What is the value of long term debt?

Answers

Answer:

$803,010

Explanation:

Calculation for the value of long term debt

First step is to find the Stockholders' equity

Stockholders' equity = $1,500,000 + $1,468,347 Stockholders' equity= $2,968,347

Last step is to find the Long-term debt

Using this formula

Value of Long-term debt= Total assets – Current liabilities – Stockholders' equity

Let plug in the formula.

Value of Long-term debt= $4,812,369 – $1,041,012 – $2,968,347

Value of Long-term debt = $803,010

Therefore the Value of Long-term debt

will be $803,010

A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent, what maximum initial investment would make the project acceptable? Multiple Choice $638,392.96 $595,833.43 $1,534,047.75 $655,213.49 $684,772.10

Answers

Answer:

PV= $684,772.1

Explanation:

Giving the following information:

A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent.

First, we need to calculate the future value of the cash flows:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {103,900*[(1.084^10) - 1]} / 0.084

FV= $1,534,047.75

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 1,534,047.75 / (1.084^10)

PV= $684,772.1

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