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1 year ago

Justin discounts a 115-day note for $26,000 at 8.5%. the effective rate of interest to the nearest tenth percent is:

Business

2 answers:

Sergio [31]1 year ago

5 0

Answer:

8.74%

Explanation:

Interest = Principal x Interest Rate = $26,000 x .085 x 115/360 = $705.97

EAR = Interest/[(Principal - Interest) x (115/360)]

= $705.97/[($26,000 - $705.97) × (115/360)] = $705.97/ $8,080.04 = 0.0874, or 8.74%

lesya692 [45]1 year ago

4 0

8.7%

$26,000 x .085 x 115/360 = $705.97
$26,000 - $705.97 = $25,294.03
$25,294.03 x 115/360 = $8080.04
$705.97/$8080.04 = 8.7%

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DS Unlimited has the following transactions during August. August 6 Purchases 84 handheld game devices on account from GamerGirl

damaskus [11]

Answer:

Explanation:

The journal entries are shown below:

On August 6

Merchandise Inventory A/c Dr $22,680 (84 handheld games × $270)

To Account payable A/c $22,680

(Being the inventory purchased is recorded)

On August 7

Merchandise Inventory A/c Dr $470

To Cash A/c $470

(Being the freight cost is paid)

On August 10

Account payable A/c $2,430 (9 handheld games × $270)

To Merchandise inventory A/c $2,430

(Being the goods are returned)

On August 14

Account payable A/c Dr $20,250 ($22,680 - $2,430)

To Merchandise Inventory A/c $405 ($20,250 × 2%)

To Cash A/c $19,845

(Being the amount due is paid)

On August 23

Accounts Receivable A/c Dr $18,560 (64 handheld games × $290)

To Sales revenue A/c $18,560

(Being the sales on credit basis is recorded)

Cost of goods sold A/c Dr $17,335

To Merchandise Inventory A/c $17,335

(Being the total cost is recorded)

7 0

2 years ago

Gidgits Galore has been busy during this lesson continuing its expansion plans throughout the United States. After all, everyone

grigory [225]

Answer:

Yes

Explanation:

Edge 2021

5 0

2 years ago

Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t

ozzi

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each $\frac{Maturity}{(1 + rate)^{time} } = PV$

cash flow and then add them together

$\frac{20,000}{(1 + 0.08)^{1} } = PV$

$\frac{40,000}{(1 + 0.08)^{2} } = PV$

$\frac{60,000}{(1 + 0.08)^{3} } = PV$

Year Nominal Present Value

1 20000 18, 518

2 40000 34,293

3 60000 47,630

TOTAL 100,441

5 0

2 years ago

You would like to have $50,000 saved at the end of Year 5. At the end of Year 2, you can deposit $7,500 for this purpose. If you

Helen [10]

Answer:

The amount that should be deposited today is $33254.58

Explanation:

The deposit should be such that the future value of the deposit made today and at the end of year 2 should be equal to $50000 after 5 years. Let the deposit made today be x. The equation for the future value will be,

50000 = x * (1+0.045)^5 + 7500 * (1+0.045)^3

50000 = x * (1.045)^5 + 8558.745938

50000 - 8558.745938 = x * (1.045)^5

41441.25406 / (1.045)^5 = x

x = $33254.57769 rounded off to $33254.58

5 0

2 years ago

During 2016, Monty Corporation spent $156,960 in research and development costs. As a result, a new product called the New Age P

MAXImum [283]

Answer:

The entries during 2016 are as follows:

- Intangible asset (R&D) $156960

Cash $156960

- Patent $32400

Cash $32400

- Patent amortization expense $3240

Patent $3240

Explanation:

According to IAS 38 (Intangible assets), research and development costs should only be capitalized (recorded as intangible assets) when all of the following criteria is met.

1- The entity intends to complete the development of research findings.

2- The costs of research and development can be reliably measured.

3- There are adequate resources available for the development and development has technical feasibility.

4- It's probable that future economic benefits will flow to the entity.

Given the data in the question, all of the requirements are met under IAS 38 and hence the research and development costs are capitalized (recorded as an intangible asset). Secondly, the patent is also an intangible non-current asset.

The entries during 2016 are as follows:

- Intangible asset (R&D) $156960

Cash $156960

- Patent $32400

Cash $32400

- Patent amortization expense $3240

Patent $3240

Patent amortization is calculated by dividing the cost of patent upon it's useful life (i.e $32400÷10).

4 0

2 years ago