Answer:
Interest expense to be recorded on Dec 31 2018= $8425
Explanation:
Lets first understand what adjusting entry is? Adjusting entries are entries passed at the reporting date in order to comply to the accruals concept of accounting. Accruals concept requires entities to record revenue and expenses in the period that they occur and should not wait until they are received or paid respectively. Revenues and expenses should be matched for the period and recorded.
Now that we have understood adjusting entry, lets calculate interest expense that should be recorded on December 31 2018. So Arch Services records interest payment on a semi-annul basis (i.e every 6 months). Now the bonds are issued on November (i.e two months to the reporting date), considering the accruals concept Arch Services will have to record interest for two months.
The interest expense is calculated as follows:
Annual Interest= $337000×15%
Annual Interest= $50550
Lets convert it into monthly basis as follows:
Monthly interest expense= $4212.5
Interest for two months would be = $4212.5×2
Interest expense to be recorded on Dec 31 2018= $8425
Answer:
It will be better to keep the old car.![\left[\begin{array}{cccc}$&$New&$Old&$Differential\\$purchase&-14000&&14000\\$Gasoline spending&-4292&-9479&-5187\\$repairs&&-7500&-7500\\$insurance&-4000&-2000&2000\\$Result&-22292&-18979&3313\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24%26%24New%26%24Old%26%24Differential%5C%5C%24purchase%26-14000%26%2614000%5C%5C%24Gasoline%20spending%26-4292%26-9479%26-5187%5C%5C%24repairs%26%26-7500%26-7500%5C%5C%24insurance%26-4000%26-2000%262000%5C%5C%24Result%26-22292%26-18979%263313%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
gasoline spending:
old:
250 miles per week/ 24 miles per gallon= 10,41666666
then that x 52 weeks per year x 3.5 per gallon x 5 years
new:
250 / 53 = 4,716981
then this x 52 weeks x 3.5 per gallon x 5 years=
repairs:
1,500 x 5 years = 7,500
insurance:
800 x 5 = 4,000 new car insurance
400 x 5 = 2,000 old car insurance
Answer:
1. February – Budgeted direct labor hours = 378; Budgeted direct labor cost = $3,024.
2. March – Budgeted direct labor hours = 413; Budgeted direct labor cost = $3,304.
Explanation:
1. February direct labor budget:
a. Number of direct labor-hours budgeted for February = 0.07 * 5,400 = 378 labor hours
b. February budgeted direct labor cost = 378 * $8.00 = $3,024
2. March direct labor budget:
a. Number of direct labor-hours budgeted March = 0.07 * 5,900 = 413 labor hours
b. March budgeted direct labor cost = 413 * $8.00 = $3,304.00
Answer:
Rochelle
Explanation:
Because Rochelle oil company is safer than lionel because if there was a leak the damage would be very big.
Answer: Medium-term goals
Personal finance goals can be classified as follows, based on time.
- Short term goals : refers to the amount of money one needs to earn and save in order to meet the financial needs within the next one year.
- Medium term goals : refer to the amount of money a person will need anywhere between one and five years from now. This might include a down payment for a car, a down payment for a house, planning for a long vacation etc.
- Long-term goals: are aimed to cater to financial requirements in the distant future (greater than five years). This may include retirement planning, university fees for children etc.
