Answer:
The result of K's inaction causes an increase in the outstanding loan by $50
Explanation:
<em>Step 1: Determine the interest amount</em>
The interest amount can be determined as follows;
I=PRT
where;
I=interest amount
P=principal amount
R=annual interest rate
T=time
In our case;
I=unknown
P=$1,000
R=5%=5/100=0.05
T=1 year
replacing;
I=1,000×0.05×1=$50
<em>Step 2: Determine the total loan amount</em>
This can be expressed as;
A=P+I
where;
A=total loan amount
P=principal amount
I=interest amount
In our case;
A=unknown
P=$1,000
I=$50
replacing;
A=1,000+50=1,050
The loan amount due after a year=$1,050
The result of K's inaction causes an increase in the outstanding loan by $50
Answer: A hire purchase is a system by which one pays for a thing in regular instalmentsinstallments while having the use of it.
A credit sale is a purchases made by customers for which payment is delayed.
Answer:
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
Explanation:
Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).
The following journal entries records this purchase transaction: A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
<u>The reason is that with a perpetual inventory system, transportation costs are added directly to the inventory balance</u>
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His study had a high level of <em>replicability.</em>
Replicability is, in psychology and other experiments, the ability for the study to consistently produce the same results when conducted multiple times with the exact same procedure. If Kevin was able to conduct his experiment and Malcolm was also able to follow the same procedure and find the same results, then his study is highly replicable.
Answer:
See explanation section
Explanation:
(a) December 1 Cash Debit $18,000
Unearned revenue Credit $18,000
<em>Note: The company received the money in advance for a contract to do during December to April. Therefore, they received cash while a liability increased due to receiving advance money.</em>
(b) December 31 Unearned revenue Debit $3,600
Service revenue Credit $3,600
<em>Note: As the company started performing, after the completion of 1st month, i.e., December 1 to December 31, the advance money started expiring because of providing services. Moreover, as the service is performed evenly for 5 months, the 1st month's revenue = $(18,000/5) = $3,600.</em>