Answer:
Total amount= $600,000
Explanation:
Giving the following information:
Suppose that you start working for a company at age 25.
Option 1:
$20,000 for each year of work.
Number of years of service= 55 - 25= 30 years
Now, the total retirement plan:
Total amount= 30*20,000= $600,000
Fes Company is making adjusting journal entries for the year ended December 31, 2018. In developing information for the adjusting journal entries, you learned the following:
a. A two-year insurance premium of $6,800 was paid on January 1, 2018, for coverage beginning on that date. As of December 31, points 2018, the unadjusted balances were $6,800 for Prepaid Insurance and $0 for Insurance Expense
b. At December 31, 2018, you obtained the following data relating to supplies:
Unadjusted balance in Supplies on December 31, 2018 $13,000
Unadjusted balance in Supplies Expense on December 31, 2018 68,000
Supplies on hand, counted on December 31, 2018 8,400
Required:
1. Of the $6,800 paid for insurance, what amount should be reported on the 2018 income statement as Insurance Expense? What amount should be reported on the December 31, 2018, balance sheet as Prepaid Insurance?
2. What amount should be reported on the 2018 income statement as Supplies Expense? What amount should be reported on t December 31, 2018, balance sheet as Supplies?
3. Indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies.
Answer:
Fes Company
1. Amount to report on the 2018 income statement as Insurance Expense
= $3,400
b. Amount to report on the December 31, 2018 balance sheet as Prepaid Insurance
= $3,400
2. Amount to report on the income statement as Supplies Expense
= $72,600
b. Amount to report on the balance sheet as Supplies = $8,400
3. The accounting equation effects of the adjustment for:
a) Insurance
Assets (Prepaid Insurance -$3,400) = Liabilities + Equity (Retained Earnings -$3,400 as Insurance Expense)
b) Supplies
Assets (Supplies - $4,600) = Liabilities + Equity (Retained Earnings -$4,600 in addition to Supplies Expense)
Explanation:
Adjusting Journal Entries:
a.
Debit Insurance Expense $3,400
Credit Prepaid Insurance $3,400
To adjust for expense for the year.
b.
Debit Supplies Expense $4,600
Credit Supplies $4,600
To adjust for used supplies.
Workings:
Supplies
Dec. 31, 2018 Balance $13,000
Supplies on hand 8,400
Supplies used $4,600
Dec. 31 Supplies Expense Balance $68,000
Supplies used $4,600
Total supplies expense = $72,600
1. When the Amount to report on the 2018 income statement as Insurance Expense
= $3,400
Income statementb. When the Amount to report on the December 31, 2018 balance sheet as Prepaid Insurance = $3,400
2. When the Amount to report on the income statement as Supplies Expense = $72,600
b. Then the Amount to report on the balance sheet as Supplies is = $8,400
3. After that The accounting equation effects of the adjustment for:
a) Insurance
Assets (Prepaid Insurance -$3,400) = Liabilities + Equity (Retained Earnings -$3,400 as Insurance Expense)
b) Supplies
Assets (Supplies - $4,600) = Liabilities + Equity (Retained Earnings -$4,600 in addition to Supplies Expense)
Adjusting Journal Entries:
a. Debit Insurance Expense $3,400
Credit Prepaid Insurance $3,400
To adjust for expenses for the year.
b. Debit Supplies Expense $4,600
Credit Supplies $4,600
To adjust for used supplies.
Workings:
Supplies
Dec. 31, 2018 Balance $13,000
Supplies on hand 8,400
Supplies used $4,600
Dec. 31 Supplies Expense Balance $68,000
Supplies used $4,600
Thus the Total supplies expense is = $72,600
Find out more information about Income statement here:
https://brainly.com/question/13061040
Blue Jeans Co.., can produce 1,300 pairs of pants per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 850 units per hour. The plant operates only 28 days per month. Based on the current budget, Blue Jeans Co.., estimates that it will be able to sell only 500,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 519,000. Assume the month has 30 days. What is the master-budget capacity utilization level for this budget period
Answer:
500,000 units
Explanation:
Since the demand is likely to be 500,000 units, the master budget capacity utilization level for this budget period will be limited to 500,000 units. The master-budget capacity utilization level is the level of capacity utilization that managers expect for the current budget period.
Brady, who has ordinary-shaped indifference curves, buys 16 ounces of salt each year. Even when the price of salt doubles, Brady continues to purchase exactly 16 ounces.
To help you answer this question, it may be helpful to use indifference curves and budget constraints to depict Brady's behavior graphically on a sheet of paper.
Which of the following statements is true?
a. Salt is an inferior good for Brady since the income effect is positive.
b. Salt is a normal good for Brady since the income effect is negative.
c. Salt is an inferior good for Brady since the income effect is positive.
d. Salt is a normal good for Brady since the income effect is positive.
Answer:
No option is correct, but I believe that one option was not copied appropriately since A and C are the same (although both are wrong).
The correct answer is Salt is an inferior good for Brady since the income effect is negative.
Explanation:
Brady's demand for salt is perfectly inelastic, in other words, his demand curve for salt is vertical since no matter the price, he always purchases the same amount.
Salt is an inferior good for Brady since the income effect is negative. He will continue to buy salt regardless of its price.
Answer each of the following independent questions. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $74,000 cash immediately, (2) $26,000 cash immediately and a six-period annuity of $8,300 beginning one year from today, or (3) a six-period annuity of $15,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose
Answer:
The best alternative is option 1.
Explanation:
Giving the following information:
(1) $74,000 cash immediately
(2) $26,000 cash immediately and a six-period annuity of $8,300 beginning one year from today
(3) a six-period annuity of $15,000 beginning one year from today.
The option with the higher present value is the most profitable.
1) PV= $74,000
2) We need to calculate the present value of the $8,300 annuity. First, we need to calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {8,300*[(1.06^6) - 1]} / 0.06
FV= $57,895.14
Now, the present value:
PV= FV/(1+i)^n
PV= 57,895.14/1.06^6
PV= 40,813.79 + 26,000
Total PV= $66,813.79
3) FV= {15,000*[(1.06^6) - 1]} / 0.06
FV= $104,629.79
Now, the present value:
PV= 104,629.79 / 1.06^6
PV= $73,759.87
The best alternative is option 1.
Pronghorn Corporation began operations on January 1, 2020 when $236,000 was invested by shareholders of the company. On March 1, 2020, Pronghorn purchased for cash $125,000 of debt securities that it classified as available-for-sale. During the year, the company received cash interest of $7,100 on these securities. In addition, the company has an unrealized holding loss on these securities of $13,500 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020). (Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).)
Answer:
a. $7,100
b. -$6,400
c. -$13,500
d. -$13,500
Explanation:
The computation is shown below:-
a. Net income
Net income = Cash interest
= $7,100
b. Comprehensive Income = Net Income - unrealized holding loss
= $7,100 - $13,500
= -$6,400
c. Other Comprehensive Income = unrealized holding loss
= -$13,500
d. Accumulated other comprehensive income:
Ending Balance of other comprehensive income = Beginning Balance + During this year
= $0 + (-$13,500)
= -$13,500
HELP ME ASAPP ! Please don’t guess!
Customer service personnel typically need at least
A. a high school diploma.
B. a vocational school certificate.
C.
a community college degree.
D.
a four-year degree.
Answer:
Customer service representatives typically need a high school diploma or equivalent and receive on-the-job training to learn the specific skills needed for the job. They should be good at communicating and interacting with people and should be adept at using computers.
Explanation:
In March 2018, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $5,000 in March 2048, but investors would receive nothing until then. Investors paid DMF $850 for each of these securities; so they gave up $850 in March 2018, for the promise of a $5,000 payment 30 years later.
Required:
a. Assuming you purchased the bond for $850, what rate of return would you earn if you held the bond for 30 years until it matured with a value $5,000?
b. Suppose under the terms of the bond you could redeem the bond in 2025. DMF agreed to pay an annual interest rate of 1.3 percent until that date. How much would the bond be worth at that time?
c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2048. What annual rate of return will you earn over the last 23 years?
Answer:
a. Assuming you purchased the bond for $850, what rate of return would you earn if you held the bond for 30 years until it matured with a value $5,000?
future value = present value x (1 + r)ⁿ
future value = $5,000present value = $850n = 305,000 = 850 x (1 + r)³⁰
(1 + r)³⁰ = 5,000 / 850 = 5.882652
³⁰√(1 + r)³⁰ = ³⁰√5.882652
1 + r = 1.0608444
r = 0.0608444
r = 6.08%
b. Suppose under the terms of the bond you could redeem the bond in 2025. DMF agreed to pay an annual interest rate of 1.3 percent until that date. How much would the bond be worth at that time?
future value = present value x (1 + r)ⁿ
future value = 850 x 1.013⁷ = $930.43
c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2048. What annual rate of return will you earn over the last 23 years?
5,000 = 930.43 x (1 + r)²³
(1 + r)²³ = 5,000 / 930.43 = 5.373859398
²³√(1 + r)²³ = ²³√5.373859398
1 + r = 1.075849638
r = 0.0758
r = 7.58%
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $19 million. This noncancelable lease had the following terms: Lease payments: $3,060,451 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025. Lease term: 5 years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 7% semiannually. Fair value of the computers at January 1, 2021: $23 million. What is the outstanding balance of the lease liability in Lone Star's June 30, 2021, balance sheet? (Round your answer to the nearest whole dollar.) Multiple Choice $18,274,866. $18,074,875. $23,000,000. None of these answer choices is correct.
Answer:
We take this as the correct option:
$18,274,866
Explanation:
Present Value of the Lease Payments:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 3,060,451
time 10
rate 0.07
[tex]3060451 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\[/tex]
PV $23,000,000.0511
Now, we build the lease schedule up to the first two payment:
[tex]\left[\begin{array}{cccccc}$Time&$Beg&$Cuota&$Interest&$Amort&$Ending&1&23,000,000&3,060,451&0&3060451&19,939,549&2&19,939,549&3,060,451&1,395,768&1664683&18,274,866\end{array}\right][/tex]