BUSINESS COLLEGE

What is the overall rate of return on a $155,000 investment that returns 23% on the first $15,000 and 16% on the remaining money

Answers

Answer 1
Answer:

Answer:

The  overall rate of return is 16.67%

Explanation:

The computation of the overall rate of return is shown below:

= Actual amount return ÷ investment amount

= ($15,000 × 23% + $140,000 × 16%) ÷ ($155,000)

= ($3,450 + $22,400)  ÷ ($155,000)

= ($25,850) ÷ ($155,000)

= 16.67%

Hence, the  overall rate of return is 16.67%

We simply applied the above formula and the same is to be considered

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If you earn an annual interest rate of 8.9 percent, how many years will it take to double your money

Answers

Answer:

Every 7.86 years the investment doubles.

Explanation:

Giving the following information:

Interest rate= 8.9% compounded annually

To determine the number of years to double the money, we can use the rule of 70:

The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.

Number of Years to Double= 70/Annual Rate of Return

Number of Years to Double= 70/8.9

Number of Years to Double= 7.86 years

Every 7.86 years the investment doubles.

Gibson Company paid $12,000 on June 1, 2014 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2014 adjusting entry is A. Debit Prepaid Insurance and credit Insurance Expense, $3,500 B. Debit Prepaid Insurance and credit Insurance Expense, $8,500 C. Debit Insurance Expense and credit Prepaid Insurance, $3,500 D. Debit Insurance Expense and credit Prepaid Insurance, $8,500

Answers

Answer:

None of the options is correct, given the facts in the question.

The appropriate answer is:

Debit Prepaid insurance                             $12,000

Credit Insurance expenses                        $12,000

(Reversal of erroneous posting to insurance expenses)

Debit Insurance expenses                          $3,000

Credit Prepaid insurance                            $3,000

(To record 6 months prepaid insurance amortization)

Explanation:

Prepaid insurance is a payment for insurance policy premium in advance, whose service has not been fully enjoyed.

Gibson Company paid $12,000 for a two-year insurance policy. This was erroneously recorded as an expense. This wrong posting has to be reversed for the purpose of audit trail, as provided by the first journal.

To determine the monthly amortization, simply divide $12,000 by 24 months to arrive $500 amortization monthly. Since we are adjusting for December 31, 2014 (6 months from June 1, 2014), the 2014 amortization will be $500 x 6 months = $3,000. This has to be adjusted for by applying the second journals above.

While Mary Corens was a student at the University of Tennessee, she borrowed $8,000 in student loans at an annual interest rate of 9%. If Mary repays $1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.

Answers

Answer:

6.93 years

Explanation:

For computing the number of years we use the NPER formula i.e to be shown in the attachment

Given that

Present value = $8,000

Future value = $0

Rate of interest = 9%

PMT = $1,600

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 6.93 years

Dennis Kozlowski, John Thain, and Raj Rajaratnam are former CEOs mentioned in the text that have been involved in corporate governance problems to one degree or another. What did Dennis Kozlowski do that was considered inappropriate behavior

Answers

Answer:

Dennis Kozlowski was found guilty of grand larceny, falsifying business records, securities fraud, and conspiracy.  He later admitted to have been driven by excessive greed as he overcompensated himself when he served as CEO of Tyco.

Explanation:

Dennis Kozlowski during his crime trial was found to have received "$81 million in unauthorized bonuses, the purchase of art for $14.725 million, and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director," according to wikipedia.com.

The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement ofBased on this information, the statement of partners' equity would show what amount in the capital account for Harrison on December 31?a.$164,000b.$216,000c.$52,000d.$380,000

Answers

Answer:

b.$216,000

Explanation:

The computation of the balance in the capital account for Harrison is shown below:

= Opening balance + additional invested amount - withdrawn amount + net income distributed

= $160,000 + $20,000 - $96,000 + $132,000

= $216,000

We assume that the net income is equally distributed.

Since we have to determine for the Harrison only so we ignored the Marti data which is given in the question

To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 860,000 shares authorized and 260,000 shares outstanding. The par value of the stock is $1 per share and the market value is $100 per share. Prepare the journal entry to record this large stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer:

Dr. Retained Earning                    $86,000,000

Cr. Common Stock                       $860,000

Cr. Paid-in-Capital excess of par $85,140,000

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Dividend Value = 860,000 x 100 = $86,000,000

Par Value of Stocks = $1 x 860,000 = $860,000

Add-in-capital excess of par common stock = ($100-$1) x 860,000 = $85,140,000

Final answer:

To record a large stock dividend, debit the Retained Earnings by the total market value of the dividend, then credit the Common Stock by the par value part, and credit the Paid-In Capital in Excess of Par by the remaining part.

Explanation:

To record a large stock dividend, you need to debit (decrease) Retained Earnings and credit (increase) Common Stock and Paid-in Capital in Excess of Par. Here's an example using Shriver Food Systems, Inc. data:

  1. Calculate the total market value of the dividend: 260,000 shares * $100 per share = $26,000,000
  2. Deduct the par value: $26,000,000 - (260,000 shares * $1 par value) = $25,740,000
  3. Make the journal entry: Debit Retained Earnings for $26,000,000. Credit Common Stock for $260,000 (this represents the par value). Credit Paid-In Capital in Excess of Par for $25,740,000 (this represents the remainder).  

Learn more about Large Stock Dividend here:

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