Kevin owns a fruit stand alongside a busy road. For several years, he has kept track of the number of apples that people purchas
2 answers:
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<u>The Unadjusted Balance of Trial Balance is $82,350.</u>
<u>The Net Income for January 2018 is $21,300.</u>
Further Explanation:
1. and 2.
Please refer to attached Table: (1) for T-accounts and their balances.
3.
For computation of Unadjusted Balance of Trial Balance, please refer to attached Table: (2)
The balance of unadjusted trial balance is $82,350.
4.
For computation of Net Income for January 2018, please refer to attached Table: (3)
The net income for January 2018 is $21,300.
Learn More:
1. Learn more about the goal of the budget
2. Learn more about the profit margins
3. Learn more about the large expenditure
Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Journal Entry and Trial Balance
Keywords: T- Account transactions, net profit, net loss, journal entry, trial balance, ledger accounts, unadjusted balance, miscellaneous expenses, rent expense, blue print expense, salary expense, automobile expense, prepaid expenses, supplies, accounts receivable, accounts payable, equipment, notes payable, common stock, professional fee, cash account, other ledger accounts, debit balance credit balance.
Answer:
Compound interest; amortized loans; amortization schedule; largest; decline; smallest; increases.
Explanation:
An important application of compound interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is largest in the first period and declines over the life of the loan, while the principal repayment is smallest in the first period and it increases thereafter.
Amortization in accounting is used to periodically lower the book value of a loan principal or an intangible asset such as intellectual property over a set period of time.
The compound interest formula is given below;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.