Calculate the amount of net income

Assignment Help Accounting Basics
Reference no: EM131737350

Q1. This question relates to the following presentation in the balance sheets of Criss Co. at March 31, 2014 and 2013:

                                                                                                                     3/31/14       3/31/13

Equipment, less accumulated depreciation of $76,000 and  $57,000, respectively  $104,000    $98,000

If the cost of new equipment purchased during the year totaled $32,000, what was the cost of equipment sold?

Q2. For the month ended February 28, 2014, a company capitalized a $3,000 expenditure that should have been expensed. Depreciation expense for the full month, using the straight-line method, was recorded for $120 in February with respect to this item. Reported operating income for February was $11,700.

a. Calculate the amount of net income that should have been reported for February.

b. If this error is not corrected, what will be the impact on operating income for the ten-month period from March 1, 2014 through December 31, 2014? (Hint: don't forget the original $3,000)

Q3. Calculate the present value of $9,200 to be received in 7 years, assuming that interest is compounded semi-annually at an annual rate of 12%.

Q4. Congratulations! You have won a prize of $48,000. But, you must decide whether to receive $8,000 at the end of every year for 6 years, or to receive $4,000 at the end of every 6 months for 6 years. Assume an annual interest rate of 16%. Calculate the present value of each alternative, and indicate which alternative you would prefer using a full sentence.

Q5. You have just added a swimming pool and deck to your home, and have taken out a 10% mortgage loan on which you agreed to make 20 annual payments of $4,698.37.

a. What was the amount of the mortgage? (Hint: It was the present value of the payments you will make.)

b. What is the total amount of the payments you will make over the 20 years?

c. What accounts for the difference between the amounts in a and b?

Reference no: EM131737350

Questions Cloud

Growth rate expected in earnings and dividends : Mickey plans to finance all capital expenditures with 40 percent debt and 60 percent equity. The stock price is $8.75
Principal factors that caused unemployment rate to rise : In 1980, the inflation rate in Italy was 21% and the unemployment rate was 4.4%. By 1998, the inflation rate in Italy had declined to 2% and the unemployment.
Discuss cultural diversity and universal health procedures : Why is it important to attend trainings in topics such as HIPAA, confidentiality, cultural diversity, universal health procedures
Develop a target of quality acceptance that is justified : Develop a target of quality acceptance that is justified based on requirement 4. Justify your selection. Presume you will implement JIT.
Calculate the amount of net income : Calculate the present value of $9,200 to be received in 7 years, assuming that interest is compounded semi-annually at an annual rate of 12%
Discuss what would the dependent variable be : what would the Independent variable be, and what would the dependent variable be
What factors rendered the guidelines ineffective : The guidelines remained in place under Johnson, but the rate of inflation gradually rose to almost 6%. What factors rendered the guidelines ineffective?
Analyses to identify the salient demographic : Lists the statistically significant independent variables - Interprets the directional of the relationship of each statistically significant
Discuss brain activity is composed primarily of alpha waves : When meditating, people enter a physiologically relaxed state during which their brain activity is composed primarily of alpha waves

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd