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1 year ago

How much should someone’s loan payment be if their total income is $100?

Business

1 answer:

BartSMP [9]1 year ago

6 0

Someone’s loan payment if their total income is $100 should be 30 times their monthly income.

The loan payments means the amounts required to be paid by the borrower in repayment of the loan pursuant to the provisions of the loan agreement, the note and the bond mortgage.

In most cases, lenders consider approximately 50-75% of the net income as instalments. In case your expenses exceed the percentage, banks either increase the tenure of the loan or reduce the amount sanctioned.

Additionally, to minimise the risk of default, lenders keep the EMIs of the loan to about 45-60% of your monthly income.

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Sweet Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Sweet does not have significant influence). Dur

aliina [53]

Answer:

(a) Debit Equity Investments for $11,900; and Credit Cash for $11,900.

(b) Debit Cash for $1,170; and Credit Dividend Revenue for $1,170.

Explanation:

(a) Journal entries to record the purchase of the investment

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Equity Investments 11,900

Cash 11,900

(To record the purchase of the investment.)

(b) Journal entries to record the dividends received

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Cash (w.1) 1,170

Dividend Revenue 1,170

(To record the dividends received.)

(c) Journal entries to record the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Fair Value Adjustment (w.2) 1,600

Unrealized Holding Gain or Loss - Income 1,600

(To record the fair value adjustment.)

Workings:

w.1: Cash = Dividend received = Number of shares * Cash dividend per share = 360 * $3.25 = $1,170

w.2: Fair Value Adjustment = Fair value - Common stock purchase cost = (Number of shares * Selling price per share) - Common stock purchase cost = (360 * $37.50) - $11,900 = $1,600

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3 years ago

The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in respon

gizmo_the_mogwai [7]

Answer:

The correct answer is: Materials Price Variance: Production Manager

Materials Quantity Variance: Purchasing Agent

Explanation:

The production manager had to buy the materials that are commonly used, as this is an item of great importance in the process of converting the materials, since otherwise there is a risk of becoming waste due to their quality. In the case of the variation presented, each manager or person in charge of the area must supervise that the measurements are well calculated, and that the aspects related to the direct process must be effectively ensured for the good of the operation.

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4 years ago

The video says only a handful of companies make eyeglasses and they mark them up 10 or 20 or more times. Markup pricing is best

Alborosie

Answer:

Option A: Adding a predetermined percentage of the cost to the cost of the product

Explanation:

Price

This is simply refered to as money or other thing that ia used i exchanged for the right, ownership or use of a good or service.

Markup

This is commonly defined as thd difference between the cost price and the selling price of an goods or services that the business gives. it is the dollar amount listed or added to the cost of products to get the selling price. It is fondly called Gross Profit , Markup Margin or Margin, Gross Margin.

Standard Markup Pricing

This is the difference between selling price and cost. It is usually called as a percentage of cost.

The need for a markup is that business gather up expenses in order to be in a position to sell goods or services, and the markup covers these expenses and other factors

8 0

3 years ago

Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website tha

Musya8 [376]

Answer:d. was able to fund his project through seed money.

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5 0

3 years ago

Black Bear Auto Company incurred $120,000 of indirect advertising costs for its operations. The following 2017 data have been co

Alex

Answer:

a. Allocating cost using direct advertising costs

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

b. Allocating cost using Newspaper ad space

We have:

Cost allocated to New Cars = $72,000

Cost allocated to Used Cars = $36,000

Cost allocated to Parts and Service = $12,000

c. Allocating cost using Sales

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

Explanation:

Given:

New Cars Used Cars Parts and Service

Direct advertising costs $30,000 $24,000 $6,000

Newspaper ad space 60% 30% 10%

Sales $250,000 $200,000 $50,000

The costs allocated to each department can now be calculated as follows:

a. Allocating cost using direct advertising costs

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Direct advertising costs of the department / Sum of direct advertising costs of the 3 departments) * Indirect advertising costs ................... (1)

Using equation (1), we have:

Cost allocated to New Cars = ($30,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($24,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $48,000

Cost allocated to Parts and Service = ($6,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $12,000

b. Allocating cost using Newspaper ad space

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = Percentage of Newspaper ad space of the department * Indirect advertising costs ................... (2)

Using equation (2), we have:

Cost allocated to New Cars = 60% * $120,000 = $72,000

Cost allocated to Used Cars = 30% * $120,000 = $36,000

Cost allocated to Parts and Service = 10% * $120,000 = $12,000

c. Allocating cost using Sales

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Sales of the department / Sum of Sales of the 3 departments) * Indirect advertising costs ................... (3)

Using equation (3), we have:

Cost allocated to New Cars = ($250,000 / ($250,000 + $200,000 + $50,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($200,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $48,000

Cost allocated to Parts and Service = ($50,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $12,000

5 0

3 years ago