B. The higher the price, the larger the quantity produced.
Answer:
Oct 31
Dr Cash $7,201
Cr Notes receivable—R. Albany $7,000
Cr Interest revenue $201
Explanation:
Preparation of Jun's journal entry assuming the note is honored by the customer on October 31, of that same year
Oct 31
Dr Cash $7,201
($7,000+$201)
Cr Notes receivable—R. Albany $7,000
Cr Interest revenue $201
(11.5%*7,000*90/360)
Answer:
The answer is through legal redress known as Specific Performance.
Explanation:
A contract is an agreement between two or more people. It is legally binding and enforceable. Each individual must satisfy their separate obligations.
Since the contract has been signed. This means it is legally binding.
Since it is legally binding, the best course of action is to proceed to court of law.
In law, this known as Specific Performance. Specific Performance is a resolution used by competent court of law to order a party to perform a specific act like order the owner of the land to relinquish the land. Specific Performance is an equitable remedy.
Answer:
2. False
Explanation:
Capacity to a contract refers to whether the person to a contract is legally competent to enter into such a contract.
For instance, lunatics, drunkards, minors, criminals and person of unsound mind are deemed incapable of entering into a contract.
A person diagnosed with dementia, which impairs his decision making would normally be regarded as incapable to signing a contract.
But, capacity is ascertained as per the situation i.e at the time the contract is signed or entered into.
In the given case, Ronald entered a contract while he was sane and in healthy state of mind. His judgement at the time of entering such a contract wasn't impaired by dementia.
Thus, the contract will be legally enforceable as per the law.
Answer:
b. decrease no effect
Explanation:
When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.
Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.
Total paid in capital will decrease
Retained earnings will have no effect
Hope that helps.
