Answer:
<u>86 payments approximately</u>
<em>Explanation</em>:
<u>First</u>;
Find the monthly average interest rate,
=7%/12
=0.0058333333
<u>Second</u>;
Add the monthly average interest rate to the monthly payment
= $175 + 0.0058333333
= $175.00583333 (average total monthly balance)
<u>Third</u>;
Divide final account balance by the average total monthly balance
= 15,000 / 175.00583333
=85.71 payments.
Answer:
Net income = $180,000
- salaries = ($30,000 + $35,000 + $10,000 = $75,000)
adjusted net income = $105,000
the adjusted net income must now be divided equally between the 3 partners:
- Bonnie: $35,000
- Clyde: $35,000
- daughter: $35,000
Their yearly gross income:
- Bonnie: $35,000 + $30,000 = $65,000
- Clyde: $35,000 + $35,000 = $70,000
- daughter: $35,000 + $10,000 = $45,000
total taxable income = $65,000 + $70,000 + $45,000 = $180,000
Answer:
an increase of $5,000 in the cash flows from financing activities
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash, and the increase in note payable is also recorded
The computation is shown below:
= Ending balance of note payable - beginning balance of note payable
= $40,000 - $35,000
= $5,000
Answer and Explanation:
The Journal entry with their narrations is shown below:-
1. Cash Dr, $43,000
To Notes Payable $43,000
(Being Cash is recorded)
2. Interest expenses Dr, $215
($43,000 × 6% ÷ 12)
Notes payable Dr, $616.31
To Cash $831.31
(Being Interest expenses is recorded)
3. Interest expenses Dr, $211.92
($43,000 - $616.31) × 6% ÷ 12)
Notes payable Dr, $619.39
To Cash $831.31
(Being Interest expenses is recorded)
Therefore we have recorded the issuance of the installment note payable and the first two monthly payments.
<span>GDP per capita is not a good measure of the standard of living because there is no attention paid to the price level in GDP per capita. For example, your GDP could be really high such as in places like Japan(largest economy in the world at the moment) so their GDP per capita is high. However, their cost of living is also very high(due to lack of land area) leading to a low standard of living.</span>
