Answer:
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Explanation:
Answer:
When the sales is made, you have to journalize the following:
When the credit card bank transfers you the money, you must journalize the following:
Answer:
Annual depreciation= $420,000
Explanation:
Giving the following information:
The cost of an asset is $1,050,000, and its residual value is $210,000.
The estimated useful life of the asset is four years.
To calculate the depreciation expense using the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(1,050,000 - 210,000)/4]
Annual depreciation= $420,000
Answer:
The amount due under quarterly compounding is higher by =$ 187.12
Explanation:
To determine the amount money by which the quarterly compunding is greater, we would compare the total sum due under the two compounding options.
This is done below:
Quarterly compounding
FV = A × (1+r)^n
PV - principal amount owed = 6,000
r- quarterly interest rate = 12%/4 = 3% per three month
n - number of quarters in 4 years = 4× 4 = 16
Loan amount due with interest after 4 years
= 6,000× (1.03)^(48) = 9628.23
Annual compounding
PV - principal amount owed = 6,000
r- annual interest rate = 12% =
n - number of years = 4
Loan amount due =6,000× (1.12)^(4) = 9,441.12
The amount due under quarterly compounding is higher by
= 9628.23 - 9,441.12
=$ 187.12