Can someone pls solve 2.10 for me ?

Hector has decided that he wants to open a business in which he sells garden and landscaping plants and provides classes on how

azamat

Answer: Sole Proprietorship

Explanation: This is a form of a business organisation in which one person owns and controls the organisation. Also known as a sole trader, this is not a legal entity. There is no legal separation between the owner and the business itself. The person owns the business and is responsible for the debts incurred in the business. However this also means that the sole trader receives all the profits generated from the organisation.

Hector is thus the sole trader in this question. He will be personally liable for any debts incurred in the business, but he will also solely reap the benefits of the business, such as the profits earned. He can run the business under his own name, or create a fake name. But this will not separate his organisation from him.

6 0

4 years ago

A company issued 260 shares of $100 par value common stock for $31,000 cash. The total amount of paid-in capital in excess of pa

Lelu [443]

Answer:

The total amount of paid-in capital in excess of par is: $5,000.

Explanation:

When Common Stocks are classified as par value Stocks, any price paid in excess of the par value of the Stock is accounted for in the Share Premium account.

<u>Here is the Summary of the Transaction provided.</u>

Common Stocks : 260 shares × $100 = $26,000

Paid-in capital in excess of par : $31,000 - $26,000 = $5,000

5 0

3 years ago

True or false: employers are made worse off but employees are made better off by this law.

RUDIKE [14]

Which law are we being asked about?

3 0

4 years ago

The ledger of Mai Company includes the following accounts with normal balances as of December 31: Common Stock $9,000; Dividends

Molodets [167]

Answer:

Dec 31 Dr Service Revenue 13,000

Cr Income Summary 13,000

Dec 31 Dr Income Summary 10,000

Cr Wages Expense 8,400

Cr Rent Expense 1,600

Dec 31 Dr Income Summary 3,000

(13,000-10,000)

Cr Retained Earnings 3,000

Dec 31 Dr Retained Earnings 800

Cr Dividends 800

Explanation:

Preparation of its December 31 closing entries.

Dec 31 Dr Service Revenue 13,000

Cr Income Summary 13,000

(Being to close revenue account)

Dec 31 Dr Income Summary 10,000

(8,400+1,600)

Cr Wages Expense 8,400

Cr Rent Expense 1,600

(Being to close expense account)

Dec 31 Dr Income Summary 3,000

(13,000-10,000)

Cr Retained Earnings 3,000

(Being to close net income/loss)

Dec 31 Dr Retained Earnings 800

Cr Dividends 800

(Being to close dividends)

4 0

3 years ago

A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate

Lynna [10]

Answer:

$113,465

Explanation:

Calculation to determine difference in total dollars that will be paid to the lender under each loan

First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month

$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})

PMT = $804.62

Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month

$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})

PMT = $ 978.87

Now let determine the Total difference

Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)

Total difference= $113,465

Therefore difference in total dollars that will be paid to the lender under each loan is $113,465

6 0

3 years ago