Answer:
See Explanation
Explanation:
(a)
Journal entry to record the transaction is,
Particulars Debit Credit
Land and Building (460000 + 520000) $980,000
Cash Paid $360,000
Mortgage Payable (980,000 - 360,000) $620,000
We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.
(b)
First installment = Principal + Interest payable
= 31,000 + (620,000 * 0.04) = $55,800
(c)
Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560
Since the chart of accounts is not provided you can confirm the the account headings.
Hope that helps.
Answer:
a.mechanistic
Explanation:
Based on the scenario being described within the question it can be said that it seems that Fine Lines Inc. is using a mechanistic structure. This type of structure, also known as a bureaucratic structure, is a structure based on a single formal and centralized network where authority comes from the top-level managers who make most of the decisions.
Answer: not affecting the manager's bonus
Explanation:
Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.
The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.
Most economists prefer real GDP growth as the best indicator of current economic performance. Real GDP is the gross domestic product in constant dollars. In other words, it is a nation's total output of goods and services, adjusted for price changes. The real GDP allows economists to make useful comparisons of a nation's output and services by eliminating the effect of price changes. It is also known as inflation-corrected GDP and constant-price GDP.
