Answer:
Cash would be debited $5,000 on the left side of the T account. Unearned programming service revenue will be credited $5,000 on the right side of T account.
Explanation:
When cash is received, cash increases and is debited by $5,000 (note Cash is an asset account, when asset and expense accounts increase they are debited. When revenue, liability, and owner's equity increase they are credited).
The revenue for this service is not earned yet so we pass the other leg of the entry to Unearned Programming Revenue. It is a revenue account so when it increases we credit. So we credit $5,000 to this account.
When a business receives cash in advance for services, this is treated as a liability called 'Unearned Revenue'. The Cash account would be debited (increased) by $5,000 and the Unearned Revenue account would be credited (increased) by $5,000.
When Major Programming receives $5,000 in advance for providing programming services, this is considered as prepayment and thus, it is recorded as a liability on the balance sheet. In terms of T-accounts, it would be recorded as follows:
Therefore, the T-accounts would reflect an increase in both Cash and Unearned Revenue by $5,000 each, resulting from this transaction.
#SPJ3
Answer:
Current intrinsic value - equity = $1155.56
Explanation:
FCFE or Free cashflow to equity is the free cash flow attributable to the equity holders. Using the constant growth model of FCFE we can calculate the intrinsic value of the equity or intrinsic value per share. The formula for the constant growth model is as follows,
Value of equity = FCFE0 * (1+g) / (r - g)
Where,
Current intrinsic value - equity = 100 * (1+0.04) / (0.13 - 0.04)
Current intrinsic value - equity = $1155.56
Answer:
the annual consumer spending is $58,000
Explanation:
The computation of the amount of the wilson family is shown below"
Annual consumer spending is
= Disposable income × marginal propensity to consume + autonomous consumption spending
= $60,000 × 0.8 + $10,000
= $48,000 + $10,000
= $58,000
hence, the annual consumer spending is $58,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
b. If the maintenance margin is 30%, how low can Xtel's price fall before you get a margin call?
c. How would your answer to (b) would change if you had financed the initial purchase with only $12,500 of your own money?
d. What is the rate of return on your margined position (assuming again that you invest $17,500 of your own money) if Xtel is selling after one year at (i) $56; (ii) $50; (iii) $44?
e. Continue to assume that a year has passed. How low can Xtel's price fall before you get a margin call?
Answer:
The value of the 500 shares at the time of the purchase is $25,000 therefore $7500 had to be borrowed from the broker. With an immediate price change, we don’t need to worry about the interest rate on the loan. If the price
of Xtel stock jumps to p, say, the return on the investment, denoted rp, is given
by;
Explanation:.A) rp =
p × 500−7,500−17,500/17,500
=
500p − 25, 000/15, 000
Hence: r56 =500(56)-25,000/15,000= 28000-25,000/15,000 =20%
r50
= 500(50)-25,000/15,000= 25,000-25,000/15,000= 0%
r44 = 500(44)-25,000/15,000= 22,000-25,000/15,000= -20%
B) For a price p, the margin ratio is
500p − 7,500/500p
A margin ratio 0.3 implies that
500p − 7,500/500p= 0.3=>500p − 7,500=150p
=>p= 7500/350= 21.43
C)For a price p, the margin ratio is
500p − 12,500/500p
A margin ratio 0.3 implies that
500p − 12,500/500p= 0.3=>500p − 12,500=150p
=>p= 12,500/350= 35.71
D). Let p denote the price of Xtel’s stock at the end of the year. The return on this investment, rp, is then
rp =500p − (1.08)7,500 − 17,500/17,500=
500p − 25, 400/17,500
Thus r56= 500(56)-25,400/17,500= 14.86%
r50 = 500(50)-25,400/17,500 = -2.29
and
r44= 500(44)-25,400/17,500= -19.43%
E) For a price p, the margin ratio is then
500p − 7,900/500p
Thus a margin ratio 0.3
implies that;
500p − 5,900/500p
= 0.3 => 500p − 5,900 = 150p
=> p = 5,900/350
= 16.86
b. False
Answer:
a. True
Explanation:
The system of the bank contains the customers data i.e. name and the address by which they could be identified also their accounts are identified. Each and every account has the balance option also it involved two types of accounts i.e. saving that provides the rate of interest and the other one is for investment that used to purchase the stocks
Hence, the given statement is true
Answer:
$0 (at least under current laws)
Explanation:
Child support payments are not tax deductible. Even alimony payments made to former spouses are not tax deductible anymore.
Any property settlements resulting from a divorce are not tax deductible either nor are they considered taxable income for the receiving party.
So in this case, until the current law changes, Carter cannot deduct any amount from his tax return.
Answer:
6.92 years
Explanation:
The payback period measures how long it takes for the amount invested in a project to be recovered.
The total cost of the project is $388,000.
Because the project generates no cash flow in the first and second year , the amount recovered would be 0.
In the third year, the amount recovered of $388,000 is $69,000. This reduces the cost of the project to $319,000.
In the fourth year , the amount recovered is $88,000. This reduces the cost of the project to $231,000.
In the fifth year, the amount recovered is $102,000. This reduces the cost of the project to $129,000.
In the sixth year, the amount recovered is $140,000. This covers the cost of the project and generates a profit of $11,000.
The amount is recovered in the 6th year + 129000/ 140,000 = 6.92 years
I hope my answer helps you