On December 1, 2021, the entry for the Note Receivable would be $90,000 on the debit side and $90,000 on the credit side as Service Revenue. On December 1, 2022, $9,000 in cash is recorded for the interest revenue. This continues in the same manner for December 1 of 2023 and 2024. Interest Receivable of $750 is also recorded on the last day of each year for 2021, 2022, and 2023.
Answer:
The current value of one share of Wyatt Oil is $6.25.
Explanation:
The future value of a share after 2 years is determined by: (D2*Growth rate)/(Cost of capital - Growth rate)
= (0.56×1.04)/(0.12-0.04)
= $7.28
The present value is calculated as Future dividends multiplied by the present value discount factor (12%, time period)
= 0.56/[(1.12)^2] + 7.28/[(1.12)^2]
= $6.25
Thus, the present value of a share of Wyatt Oil today is $6.25.
Answer:
A total of 24 students is required to reach breakeven.
Explanation:
Breakeven occurs when total sales equal total expenses.
Thus,
Sales = Px * Q
Where Px represents the cost of the training session
Q denotes the number of students attending
Sales = 150Q
Cost = fixed cost + variable cost
Cost = 3000 + 25Q
Breakeven calculation
150Q = 3000 + 25Q
150Q - 25Q = 3000
125Q = 3000
Q = 3000 / 125
Q = 24
Thus, breakeven is achieved with 24 students.
Solution:
Given Information,
Heat input = ( 
) = 5.5 × 
Btu/h
Efficiency of combustion for the boiler (
) = 0.7
Efficiency after adjustments (
) = 0.8
Operating Hours (t) = 5200h
Unit cost (c) = 
Calculate heat output from the boiler 
= x
= 5.5 x x 0.7
= 3.85 x Btu/h
Now determine the heat input after the upgrade
= / 
= 3.85 x / 0.8
= 4.8125 x Btu/h
Calculate the energy conserved post-tuning
= -
= 5.5 x - 4.8125 x Btu/h
= 0.6875 x Btu/h
Calculate the yearly energy savings ( 
)
= x t
= ( 0.6875 x Btu/h ) ( 5200 hr/yr)
= 3575 x Btu/h
Lastly, calculate the annual cost savings
Annual savings = 
x Unit cost
= 3575 x Btu/h x
= 82225
Answer:
A, E
Explanation:
The accounting equation indicates that the sum of a company's assets is equivalent to its equity plus liabilities, where assets refer to resources owned by the business. Equity comprises the resources owed to the owners, whereas liabilities represent the amounts owed to creditors (external parties). These components contribute to a company's balance sheet. For the balance sheet to maintain equilibrium:
Assets must equal the total of liabilities and equity. Therefore, option A is accurate, along with option E. Option B is incorrect since certain transactions recorded may affect both balance sheet elements and those from the P/L. For example, training expenses incurred by the company paid in cash involve both an asset and an expense. Option C, on the other hand, states that Revenue minus Expense equals profit, not assets. While the latter part of this option is correct, the earlier part is not. Finally, option D is also false for the same reasons as option C.
