Answer:
c. Debit: Discount on notes payable, $41,884.
Explanation:
The journal entry is shown below:
Equipment $883,116
Discount on Notes payable $41,884 ($740,000 - $698,116)
To Notes payable $740,000
To Cash $185,000
(Being the amount paid in cash and note payable is recorded)
Working note
= Note payable amount × PVF factor at 6% for one year
= $740,000 × 0.94340
= $698,116
For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets
Answer:
4) Hyperinflation
Explanation:
Hyperinflation is when the prices of goods and services rise more than 50 percent a month. At that rate, a loaf of bread could cost one amount in the morning and a higher one in the afternoon. The severity of cost increases distinguishes it from the other types of inflation.
B. 6 points
6 points or more will restrict the minor's license for 1 year to business purposes only.
Answer: C. 17.5%
Explanation:
The Return on Equity can be calculated by the formula;
ROE = Growth rate / (1 - dividend payout ratio)
25% = Growth rate / ( 1 - 30%)
Growth rate = 25% * 70%
Growth rate = 17.5%
Answer:
a. There are two separate performance obligations in the contract. Gym membership is one performance obligation and the providing 25% discount on yoga classes is another performance obligation.
b. The standalone selling price of annual membership is $720. Therefore, F&S will allocate 
of 700 contract price to the discount voucher on yoga course and the remaining $672 will be allocated to membership.
C. solution is in the image attached.
Explanation:
b. F&S offers a 10% discount on yoga classes to all customers as part of promotional strategy. Therefore a 25% discount voucher provides a customer with an incremental value of 15% (25%-10%). Thus, the estimated stand alone selling price of the discount voucher provided by F&S is $30 ($500 * 15% incremental discount * 40% likelihood of the vouchers being redeemed).
