Answer:
% change decrease is = 1.2 %
Explanation:
given data
assets = $100 million
average duration = 3 years
liabilities = $90 million
average duration = 3 years
interest rates= 4% increase
to find out
percentage decrease in First National Bank's net worth relative to the total original asset value
solution
change in assets value is
change in assets value = $100 million × 4% × 3 year = $1200 million
change in liability value is
change in assets value = $90 million × 4% × 3 year = $1080 million
change in net worth = $1200 - $1080 = $120 million
so % change is = 
% change decrease is = 1.2 %
Answer: See explanation
Explanation:
a. Predetermined overhead rate will be:
= Administrative costs/Number of users
= 739,500/25,500
= $29 per user
Administrative costs applied to Toot will be:
= Number of users x Predetermined overhead rate
= 8900 x 29
= $258100
Administrative costs applied to Tix will be:
= Number of users x Predetermined overhead rate
= 16600 x 29
= $481400
b. For Toot
Revenue: $1,450,000
Less: Engineering cost: $402,500
Less: Administrative cost: $258,100
Profit = $789400
For Tix:
Revenue: $1,200,000
Less: Engineering cost: $521,875
Less: Administrative cost: $481,400
Profit = $196725
Answer:
Net Cash flow from Investing activities -$1,900
Explanation:
Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
Cash flow from Investing activities
Purchase equipment - $5,400
Sale of land $3,500
Net Cash flow from Investing activities -$1,900
All other transactions are related to the operating and financing activities. Hence ignored it
Answer and Explanation:
The Journal entry is shown below:-
Amount should be capitalized for new vehicle = Cost + Painting and new logo cost + Deluxe Roof rack and trailer hitch
= $15,600 + $6,600 + $2,900
= $25,100
We took the cost of painting and deluxe roof and trailer hitch costs into account as they are supposed to increase the vehicle's future benefits.
Depreciation = (Cost - Salvage Value) ÷ Number of Years
= ($25,100 - $6,300) ÷ 5
= $3,760 per year
In the year 2022 vehicle is used only for 6 months (July to Dec), depreciation expense for the year ended December 31, 2022 is
= $3,760 × 6 ÷ 12
= $1,880
So, the Journal entry is
Depreciation expense Dr, $1,880
To Accumulated Depreciation $1,880
(Being depreciation provided for the year 2022 is recorded)
Therefore for recording the depreciation provided for the year 2022 we simply debited the depreciation expenses while we credited the accumulated depreciation.
