Answer:
Closing balance of debt at the end of the month = $24,000
Interest payment = $102.08
Explanation:
The computation of closing balance of debt at the end of the month and the interest payment is shown below:-
Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month
= $25,000 - $1,000
= $24,000
Interest payment = Average Debt × Annual interest rate × 12 months
= (($25,000 + $24,000) ÷ 2) × 0.05 ÷ 12 months
= $102.08
Therefore we have applied the above formulas.
To calculate the interest payment, find the average debt balance by adding the opening and closing balance and dividing by 2. Then, multiply the average debt balance by the monthly interest rate to get the interest payment.
To calculate the interest payment using the average debt balance, we need to calculate the average debt balance for the month. To do this, we add the opening balance and closing balance of debt and divide them by 2. In this case, the opening balance is $25,000 and the closing balance is the repayment of $1,000. So the average debt balance is $(25,000 + 1,000) / 2 = $13,000.
Next, we calculate the interest payment by multiplying the average debt balance by the annual interest rate and dividing it by 12 (since it's a monthly payment). The annual interest rate is 5%, so the monthly interest rate is 5% / 12 = 0.41667%. Therefore, the interest payment is $13,000 × 0.41667% = $54.17 (rounded to the nearest cent).
Which of the following give the nominal value of a variable? Check all that apply.
__ Rina's wage is 2 comic books per hour in 2011.
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Which of the following give the real value of a variable? Check all that apply.
__Rina's wage is $14.00 per hour in 2011.
__The price of a comic book is 3.5 beignets in 2011.
__Rina's wage is 7 beignets per hour in 2011.
Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Rina's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00.
In 2016, the relative price of a comic book is ( 0.29 beignets, 3.5 beignets, $4.00, $14.00)
Between 2011 and 2016, the nominal value of Rina's wage (decreases, increases, remains the same) and the real value of her wage(decreases,increases,remains the same) .
Monetary neutrality is the proposition that a change in the money supply (does not affect, affect) nominal variables and ( does not affect, affect) real variables.
Answer:
Real variable
__ Rina's wage is 2 comic books per hour in 2011.
Nominal variable
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Relative price of comic books - 3.5 beignets
Nominal value of Rina's wage increases
Real value of Rina's wage stages the same.
Monetary neutrality is the proposition that a change in the money supply ( affect) nominal variables and ( does not affect, ) real variables.
Explanation:
Nominal value is the face value or stated value.
Real value is nominal value adjusted for inflation. Real value of money also refers to the amount of goods and services money can buy.
Relative price is the price of a good in relation to another good.
The relative price of comic books in 2016 to biegnets = $14 / $4 = 3.5
Rina's income increased from $14 in 2011 to $28 in 2016. Her nominal income increased.
But the purchasing power of her income fell. In 2011 , her income could buy :
$14 / $7 = 2 comic books
Or
14 / 2 = 7 beignets
But in 2016, her income would buy:
$28 / $14 = $l2
Or
$28 / $4 = 7
We can see that her purchasing power remains the same.
I hope my answer helps you
2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare an effective interest amortization table for these bonds.
Answer:
1. What is the amount of the discount on these bonds at issuance?
$18,885
2. How much total bond interest expense will be recognized over the life of these bonds?
total interest expense = ($248,000 x 7% x 3 years) + $18,885 = $70,965
3. Prepare an effective interest amortization table for these bonds.
see attached PDF
Explanation:
the journal entry to record the issuance
January 1, 2019, bonds issued at a discount
Dr Cash 229,115
Dr Discount on bonds payable 18,885
Cr Bonds payable 248,000
The discount on the bonds at issuance is $18,885. The total bond interest paid over the life of the bonds is $52,080. An effective interest amortization table can be created to track the interest expense, reduction of discount, and carrying value at each period.
In the scenario you described, the bonds have a par value of $248,000 and they were sold for $229,115. The discount on the bonds at issuance is the difference between the par value and the amount they were sold for: $248,000 - $229,115 = $18,885.
The annual contract rate is 7%. Therefore, the annual interest is $248,000 * 7% = $17,360. Since interest is paid semiannually, each interest payment will be $17,360 / 2 = $8,680. Since the bonds mature in three years, there will be 3 * 2 = 6 interest payments, so total bond interest paid over the life of the bonds is $8,680 * 6 = $52,080.
An effective interest amortization table can be created by calculating the interest expense at each period (at the market rate of 10%), the amount of the payment that reduces the discount, and the carrying value of the bonds at each period.
#SPJ11
Answer:
-1.67
Explanation:
Given that,
Q = 120 - 1.25p
Initial price, p = $60 per unit
Initial quantity, q = 45 units
Q = 120 - 1.25p
Now, differentiating Q with respect to price,
dQ/dp = -1.25
Therefore,
Price elasticity of demand:
= (dQ/dp) × (p ÷ q)
= -1.25 × (60 ÷ 45)
= -1.25 × 1.33
= -1.67
This means that the demand is elastic.
Answer:
Income statement
Explanation:
Statement of change in equity: It records beginning balance of equity, ending balance of equity, net income or loss, dividend paid if any.
Balance sheet: It records the assets and the liabilities side of the balance sheet which equals to
Total assets = Total liabilities + Stockholder equity
Statement of cash flows: It records three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
Income statement: It records all income and expenses of a particular period.
In the given question, the increase in assets records under the revenue part whereas if the asset decreases, it records under expenses part of the income statement.
There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.
Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.
(before proration) in Each Account Balance(before proration)
Work-in-process $25 750 S11,400
Finished goods 53 225 26,600
Cost of goods sold 75,650 38.000
Total $154,625 $76,000
Direct materials inventory has a balance of S15,000. If Seaside uses the proration approach (based on the amount of manufacturing overhead in ending balances), what will be the final balance in fatal work-in-process inventory?
a $9.000
b. 523 350
c. $23,085
d. 58 735
Answer:
b. $23,350
Explanation:
The computation of final balance in fatal work-in-process inventory is presented with the help of spreadsheet as attached below:-
The formula is presented below:-
Amount of Over-allocated Overheads = Percentage of overhead applied × Over-allocated Overheads
Account Balance after = Account Balance before - Amount of Over-allocated Overheads
Therefore the correct answer is b. that is $23,350