Read the scenario. Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is look
2 answers:
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Answer:
Equipment 716,072.53 debit
Lease payable 716,072.53 credit
interest expense 64,446.53 debit
lease payable 64,446.53 credit
Explanation:
We record the lease payment present value:
C 100,000.00
time 12
rate 0.09
PV $716,072.5277
Now we solve for the interest accrued during the year
716,072.53 x 0.09 = 64.446,53
Complete Question:
The complete question can be seen the in the attachment at the end of the solution of the question.
Answer:
Option B. -$182,057
Explanation:
The Cash flow from financing activities can be calculated by using the following formula:
Cash flow from financing activities = Changes in the equity finance
+ Changes in long term borrowings + Changes in short term borrowings
- Interest paid - Dividends paid
Here
Changes in the equity = $175,000 common stock in year 2008
- $125,000 common stock in year 2008 = $50,000
Changes in long term Borrowings = $61,290 - $78,445 = - $17,155
Changes in short term Borrowings = $16,753 - $12,004 = $4749
Interest paid is $0 because interest rate is not given hence we can't calculate it.
Dividends paid = $190,568 Opening Retained Earnings + $248,462 Net Profit for the year - $219,379 Closing Retained Earnings = $219,651
Now, by putting values in the above equations, we have:
Cash flow from financing activities = $50,000 - $17,155 + $4749 - 0 - $219,651 = -$182,057
