True or False: There is a government mandated outline that you must use for a business plan.

On January 1, 2017, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 201

statuscvo [17]

Answer:

Dagwood bonds receivables 300,000 debit

Cash 300,000 credit

--to record purchase of bonds--

Interest receivables 18,000 debit

Interest revenue 18,000 credit

--to record accrued interest on dagwood bonds--

Cash 18,000 debit

Interest receivables 18,000 credit

--to record collection of interest--

Explanation:

as the bonds are purchased at par we pay for the same as the face value

interest for the year

principal x rate

300,000 x 6% = 18,000

at December 31th the interest are receivables as we didn't collect the cash yet

Then, on january first, we receive the cash and write-off the receivables

4 0

2 years ago

Dawn is verifying the accuracy of her paycheck. She earns $12 an hour and works 40 hours each week. Her biweekly deductions are

kap26 [50]

The answer is a) $753.34

7 0

2 years ago

Read 2 more answers

A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% large

alina1380 [7]

Answer:

$7,681,257.74

Explanation:

Since the hospital will receive a payment 6% larger than the previous payment each year after the first payment, the formula for the Present Value of a Growing Annuity is used to obtain the present value.

The present value of a growing annuity formula is meant for the estimation of the present day value different payments hat grow at a proportionate rate which will be received for a period of time. This formula is stated as follows:

PV = {P ÷ (r - g)} × {1 - [(1+g)÷(1+r)]^n] ...................................... (1)

Where

PV = Present value

P = First payment = $1,040,000

r = interest rate = 11% = 0.11

g = growth rate = 6% = 0.06

n = number of years = 10 years

Substuiting all the values into equation (1), we have:

PV = {$1,040,000 ÷ (0.11 - 0.06)} × {1 - [(1+0.6)÷(1+0.11)]^10]

= {$1,040,000 ÷ (0.05)} × {1 - [(1.06)÷(1.11)]^10]

= $20,800,000 × (1 - 0.630708763)

= $20,800,000 × 0.369291237

= $7,681,257.74

I wish you the best.

6 0

1 year ago

Restore Construction Company enters into a contract to remodel Sam’s Home Store, agreeing to use only products from United Build

BlackZzzverrR [31]

Answer:

Sam’s Home Store can enforce the contract against Restore Construction Company

Explanation:

In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.

6 0

2 years ago

Swifty Corporation had net sales of $2,419,200 and interest revenue of $39,300 during 2020. Expenses for 2020 were cost of goods

damaskus [11]

Answer:

Please find the income statement below;

Explanation:

Single step Income statement

Revenues

Net sales 2,419,200

Interest revenue 39,300

Total revenues 2,458,500

Expenses

Cost of goods sold 1,464,600

Admin. expenses 216,400

Selling expenses 294,800

Interest expense 46,000

Total expenses 2,021,800

Net Income  436,700

6 0

2 years ago