Answer: Please see explanatory column for answer.
Explanation:
No Journal entry
Date Amount and explanation Debit Credit
Jan 26 No entry No entry
Reason: this is because even though an agreement was reached in the negotiation,no transaction took place.
Journal to record loan from City Bank
Date Amount and explanation Debit Credit
March 1 Cash $350,000
Notes payable $350,000
Journal to record payment of loan with interest from City Bank from March - September.
Date Amount and explanation Debit Credit
September 1 Notes payable $350,000
Interest Expense $14,000
Cash $364,000
calculation: Interest = PxRXT= 350,000 X 8% X 6/12= $14,000
Answer:
Price Skimming
Explanation:
Price skimming: It is a pricing strategy of a firm that allow firm to use higher price of a product initially, however, firm reduce the price over the period of time to gain more marketshare by penetrating the product into different segment, which are price sensetive segment. Higher price at the beginning help the firm to gain more profit to cover most of the cost as demand is high at the beginning due to brand value and buzz created by the firm before launching the product in the market.
In the given case, Prairie herb vinegar have sold the 16-ounce bottle at higher price than Heinz Vinegar, however, they are used in the same way, as Prairie Herb vinegar is new to the market, perceived to be of higher quality, and provides a unique flavor to foods, which is a example of price skimming.
The term which refers to the innovations that could improve financial services is; Choice B; Fintech.
<h3>What is fintech?</h3>
Finance: This is the science of management of money and other assets.
Technology is the use of modern knowledge and equipment to perform an activity.
The term fintech in its simplest meaning refers to financial technology which involves the application of technological knowledge to the trading of financial services.
Such financial services may range from peer to peer lending, mobile wallets among a host of other types of services.
Hence, it follows that the general term which refers to innovations that could improve financial services is; Choice B; fintech.
Read more on fintech;
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Warren's earnings would go up (or down) by twice as much as Miller's with an equal increase (or decrease) in sales. The operating leverage is a ratio which describes the relation between the sales, the variable cost, and the fixed cost that used in the production process. 1.5 operating leverage shows that there will be $1.5 increasing in income for each of $1 increase in sales. 3 operating leverage shows that there will be $3 increasing in income for each of $1 increase in sales
