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Strike441 [17]
3 years ago
13

Peachtree Company borrows $30,000 from the local bank at 7% interest. The term of the note is five years, and the annual payment

s remain constant at $7,317. Determine the decrease in notes payable that Peachtree Company should record in the first year.
a. $1,735.
b. $5,217.
c. $2,100.
d. $7,317.
Business
2 answers:
grandymaker [24]3 years ago
4 0

Answer:

B

Explanation:

Here, in this question, we are asked to determine the decrease in notes payable that peachtree should record in the first year.

To determine this, we proceed as follows;

Interest payment for the first year = 30000*7% i.e 2100

Principal amount paid = Total amount paid - Interest amount

= 7317 -2100 i.e 5217

Notes payable should be reduced by 5217

Leviafan [203]3 years ago
3 0

Answer:

b. $5,217.

Explanation:

Note annual payment includes the interest payment for the period and the residual of total payment made and interest is the the payment towards the principal value of the lease.

Total Loan value = $30,000

Annual Loan payment = $7,317

Interest for the period = $30,000 x 7% = $2,100

Principal Payment = $7,317 - $2,100 = $5,217

The Liability is decrease by $5,217

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If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what k
BigorU [14]

Answer:

industrial products

Explanation:

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3 years ago
a sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?
Elza [17]

Complete Question:

A sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?

a. depreciation

b. mortgage interest

c. rent

d. Utilities

Answer:

b. mortgage interest

Explanation:

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3 0
3 years ago
Carla was unhappy with her haircut. The next time she wanted a haircut, she went to a different hairstylist who Carla thought wa
tatiyna

Answer:

B. Switching

Explanation:

Based on the information provided within the question it can be said that the term that would best describe Carla's behavior would be Switching. This is when a customer changes from one product or service provider to another completely different one within the same industry. Usually because of a bad experience or they are overall displeased with the service provided, which seems to be the case with Carla's first haircut.

8 0
3 years ago
Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte
goldenfox [79]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

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The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

3 0
3 years ago
Read 2 more answers
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