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1 year ago

Mr. Decker invested $20,000 in cash in his new business. How does the company record the investment?

Business

1 answer:

Rudiy271 year ago

8 0

Answer:

The company records the investment by the entry:

(D) debit Cash and credit Owner's Equity

Explanation:

Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.

In the case, the company that he invested received cash from Mr. Decker.

The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:

Debit Cash $20,000

Credit Owner's Equity $20,000

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Where can I find a copy of my residence weekend attendance records? MyUC / UC One My advisor My UC Email All of the above

Margarita [4]

Answer: Your Advisor

Explanation:

MyUC / UC One is a portal for UC students.

6 0

2 years ago

Tim spends his income on donuts (D) and coffee (C). Coffee is $2 per cup and donuts are $1 each. Assume that Tim has $10 to spen

stealth61 [152]

Answer:

Optimal number of donuts = 5 Donuts

Optimal cups of coffee = 2.5 cups.

Explanation:

Optimal numbers of donuts and coffee can be calculated as follow

First, we need to determine the budget constraint as below

M = ( P(D) x D ) + ( P(C) x C )

Placig values in the formula

10 = D + 2C

Now make utility function as:

U(D,C) = D0.5 C0.5

Marginal Utility donuts

MU(D) = 0.5D-0.5C0.5

Marginal Utility Coffee

MU(C) = 0.5D0.5C-0.5

The formula for marginal rate of substitution

(MRSD,C)= MU(D) / MU(C) = 0.5D - 0.5C0.5 / 0.5D0.5C - 0.5 = C/D

Now calculate the optimal consumption level

MRSD,C = P(D) / P(C)

C/D = 1/2

D = 2C (Equation 1 )

Placing the value of D resulted from equation 1, in the budget constraint we as below

10 = D + 2C

10 = 2C + 2C

10 = 4C

C = 10/4 = 2.5

NOw place the value of C in equation 1

D = 2C = 2(2.5) = 5

Optimal number of donuts = 5 Donuts

Optimal cups of coffee = 2.5 cups.

7 0

1 year ago

Today, you are purchasing a 15-year, 6.5 percent annuity at a cost of $36,500. The annuity will pay annual payments starting one

Licemer1 [7]

Answer:

Periodic payment = $3,881.88 (Approx).

Explanation:

Given:

Present value of annuity = $36,500

Rate = 6.5% = 0.065

Number of payment = 15

Computation:

$Present\ value\ of\ annuity = periodic\ payment[\frac{1-(1+r)^{-n}}{r} ]$

$36,500 = periodic\ payment[\frac{1-(1+0.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-(1.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-0.388826524}{0.065} ]\\\\36,500 = periodic\ payment[\frac{0.611173476}{0.065} ]\\\\36,500 = periodic\ payment[9.40266886 ]\\\\periodic\ payment = 3,881.87658$

Periodic payment = $3,881.88 (Approx).

4 0

1 year ago

When a development team is having trouble delivering a working increment because they don't understand a functional requirement?

Aleksandr [31]

If a developmental team is having trouble delving a working increment because they don't understand a functional requirement, they should work with the product owner so that can get better clarification on how the product works. If the developmental team continues to have problems, it is likely the result of the product that has functional issues.

8 0

1 year ago

Trueware Corporation is a start-up firm with a capital structure that includes 25 percent debt. Trueware has no preferred stock.

defon

Answer:

$1.53

Explanation:

Calculation to determine the difference in earnings per share (EPS) for the capital structure

Debt = 0.25 × Total assets = 0.25 × $500,000

Debt= $125,000

Equity = (1 − 0.25) × Total assets = 0.75 × $500,000

Equity = $375,000

Net income (NIRuby) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIRuby) = [$80,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIRuby= $47,250

EPSRuby = Net income/Number of shares outstanding

EPSRuby = $47,250/22,000 shares

EPSRuby= $2.15 per share

Net income (NIEmerald) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIEmerald) = [$32,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIEmerald) = $13,650

EPSEmerald = Net income/Number of shares outstanding

EPSEmerald = $13,650/22,000 shares

EPSEmerald= $0.62 per share

Difference between the earnings per share = $2.15 - $0.62

Difference between the earnings per share= $1.53

Therefore the difference in earnings per share (EPS) for the capital structure is $1.53

5 0

1 year ago