Answer:
Explanation:
Present value of note = Annual payment x present value annuity factor
Annual payment = 8,400
PVAF = 4,7665
= $ 8,400 x 4.7665
= $ 40,038.60
So, the present value of note is $ 40,038.60
Answer:
$61,175
Explanation:
Base on the scenario been described in the question, we expected to solve for the future worth
The table of the cash flow is shows in the picture
We can find that by calculating the Future worth
Future Worth = {2,500 + 1,500(P/A 7%,10) 100 + (P/G 7%,10) } [F/P 7%, 20]
Future worth = { 2,500 + 1500(7.024) + 100(27.716)}
Future worth = $61,175
Answer:
Explanation:
The journal entries are shown below:
1. Investment in shares of Edwards Co A/c Dr $600,120
To Cash A/c $600,120
(Being the purchase of stock is made)
The investment is computed below:
= Number of shares acquired × par value of common stock + commission charges
= 12,000 shares × $50 + $120
= $600,120
2. Cash A/c Dr $16,800
To Dividend A/c $16,800
(Being dividend received is recorded)
The receipt of dividend is shown below:
= Number of shares × cash dividend per share
= 12,000 shares × $1.40
= $16,800
3. Cash A/c Dr $247,900
To Profit on sale $47,860
To Investment in shares of Edwards Co A/c $200,040
(Being sale of shares is recorded and the remaining amount is credited to the profit)
The computation of this above entry is shown below:
Cash Account = Number of shares sold × par value of common stock - commission charges
= $4,000 × $62 - $100
= $247,900
Profit on sale = (Purchase of stock ÷ Number of shares acquired) × Number of shares sold
= ($600,120 ÷ 12,000) shares × 4,000 shares
= $200,040
Answer: $11,200
Explanation:
Using the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
So,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
Based on equation (1), in order to compute for the total liability, we need to compute the total assets and total capital.
At the end of the first year, the following are the assets Shapiro's consulting services (together with the amount):
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.
Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year.
Moreover, the withdrawal of money by the owner also decreases the capital.
Thus, the total capital at the end of first year is calculated as follows:
Capital (start of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: ($2,000) means -$2,000. This notation is used in accounting.
Hence using equation (1), the total liabilities at the end of first year is given by
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Answer:
The answer is: The total value of GDP is $2 Billion
Explanation:
The formula for calculating GDP is:
GDP = C + I + G + (X – M) = $1,000 MM + $200 MM + $600 MM + $200 MM
GDP = $2,000 MM (or $2 Billion)
- consumption: $1 billion ($400 MM consumers + $600 MM businesses)
- investment: $200 MM (change in inventories)
- government: $600 MM
- exports - imports: $200 MM (no imports)
