Answer:
The approximate present value = $24294
Explanation:
Given the annuity or expected amount for 10 years = 2000 dollars
The corporation expects the amount for next 10 years = $3500
Discount rate or interest rate = 8%
Present value = (2000 × PVIFA at 8%, 10 YEARS) + (3500 × PVIFA at 8%, 10 YEARS × PVIFat 8%, 10 YEARS)
Present rate = (2000 × 6.710) + (3500 × 6.710 X 0.463)
= $24293.6 or $24294 (round off)
Answer:
A. Dr Wages expense 4,000
Cr Wages payable 4,000
B. Dr Interest receivable 1,500
Cr Interest revenue 1,500
Explanation:
Preparation of Journal entries
A. Based on the information given we were told that the company employees earned wages of the amount of $4,000, which will be paid on in January of next year which means that the Journal entry will be:
Dr Wages expense 4,000
Cr Wages payable 4,000
B. Based on the information given we were told that the company had earned the amount of $1,500 as interest revenue which means that the Journal entry will be recorded as:
Dr Interest receivable 1,500
Cr Interest revenue 1,500
Answer:
Break-even point in dollars is b) 810,811
Explanation:
Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.
It is calculated with the fixed cost divided to the porcentage of contribution margin.
step 1: % of contribution margin
CMg/total sales
($90,000+$280,000)/$1,000,000=0.37 %CMg
Step 2: Break-even point
FC/%CMg
$300,000/0.37=$810,811
Answer:
= 5.18%
2.88%
True
Explanation:
Nominal GDP is GDP calculated using current year prices
Change in nominal GDP from 2017 to 2018 = 20,494.1 / 19,485.4 - 1 = 0.0518 = 5.18%
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation
The percentage change in real GDP from 2014 to 2015 = 17,386.7 / 16,899.8 - 1 = 0.0288 = 2.88%
percentage change in real GDP from 2015 to 2016 = 17,659.2 / 17,386.7 - 1 = 1.57%
The percentage change in real GDP from 2014 to 2015 was higher than the percentage change in real GDP from 2015 to 2016