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natita [175]
3 years ago
12

A buyer and seller have entered into a contract for sale of a duplex. the buter defaults on the contract and the seller claims t

he escrow deposit per contractual agreement. What term applies to this situation?
Business
1 answer:
Lerok [7]3 years ago
8 0

Answer:

The answer is: Earnest money deposit (EMD)

Explanation:

An EMD or a good faith deposit is done in a real estate operation. Usually when the buyer doesn´t have all the money to buy the property they make a EMD when signing a sales contract. The EMD gives the buyer some time to get a loan, conduct the title search, a property appraisal and all the inspections necessary before closing the deal. The buyer gets his money back in case something goes wrong with the sell that isn´t his responsibility, i.e. the house has severe damage that was unnoticed until a further inspection was made. But when the sell isn´t carried out due to issues with the buyer, i.e. he couldn´t get his loan approved in time, then the buyer gets to keep the EMD. The contingencies must be stipulated in the contract, ether in favor of the buyer or the seller to establish in which cases a party can claim the EMD.

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The income statement for Splish Traveler Company shows cost of goods sold $307,000 and operating expenses (exclusive of deprecia
enyata [817]

Answer:

a. $349,700

b. $209,900

Explanation:

The computation is shown below:

Before computing the cash payment made to supplier first we have to find out the purchase amount which is shown below:

(a) Change in Finished goods + purchase = Cost of goods sold

-$25,800 + purchases = $307,000

So, the purchase is $332,800

Now

Cash paid to supplier is

= $332,800 + $16,900

= $349,700

And,

(b) Cash paid for operating expenses is

= $229,000 - $8,000 - $11,100

= $209,900

5 0
3 years ago
A south sea island produces only coconuts. In​ 2015, the price of a coconut is ​$1.00 and the quantity produced is 250 . In 2019
maria [59]

Answer:

the real GDP in 2019 is $200

Explanation:

The computation of the real GDP is shown below;

= Base year price × quantity produced in 2019

= $1 × 200

= $200

Hence, the real GDP in 2019 is $200

The above should be used to determine the real GDP in 2019 and the same should be relevant

8 0
2 years ago
Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totali
eimsori [14]

Answer:

Marriott International

Journal Entries:

a. $300,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Cash $300,000

Sale of Assets $300,000

To record the cash receipts from the sale of assets.

No gain or loss on disposal.

b. $900,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $900,000

Credit Sale of Assets $900,000

To record the cash receipts from the sale of assets.

Sale of Assets $600,000

Gain on Disposal $600,000

To record the gain on the disposal of the furniture.

c. $100,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $100,000

Credit Sale of Assets $100,000

To record the cash receipts from the sale of assets.

Loss on Disposal $200,000

Sale of Assets $200,000

To record the loss on disposal of the furniture.

2. The disposal of an asset creates either a loss on disposal or a gain on disposal, which is normally regarded as a capital loss or a capital gain, as the case may be.

Explanation:

a) Data and Calculations:

Furniture (cost) ............................... $8,000,000

Accumulated depreciation .............. ...7,700,000

Net book value = $300,000

a. $300,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $300,000

Sale of Assets $300,000

b. $900,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $900,000

Sale of Assets $900,000

c. $100,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $100,000

Sale of Assets $100,000

8 0
2 years ago
The best explanation as to why direct democracy would not work well in the United States is that
Masteriza [31]

The US general population is far too diverse and the population too large.  There is bound to be issues and disagreements on almost all laws that would be passed.  With the amount of laws being passed in the state and national government nowadays, people would literally spend most of their waking hour voting rather than being useful members of the society

:)

6 0
3 years ago
Corporation has the following capital structure at the beginning of the year:4% Preferred stock, $50 par value, 20,000 shares au
nikdorinn [45]

Answer:

The journal entries are as follows:

(1)

Retained Earnings A/c                  Dr.      $75,000

Dividends Payable - Preference Shares                $10,000

Dividends Payable - Common Stock                      $65,000

Workings:

Out of $75,000 dividend payable, $10,000 is for the preference dividend being 4% of $250,000 and remaining is for common stock which is $65,000 .

(2) A 15% common stock dividend was declared. The average market value of the common stock is $24

a share.

Retained Earnings..............................Dr... $147,600

Common Stock to be distributed (at par)..........Cr.$61,500

Additional Paid in Capital from stock dividend....Cr.$86,100

Workings:

15% common stock dividend was declared means 15% of 41,000 shares which is 6,150, common stock was declared as dividend at a prevailing market price of $24 out of which $10 is the par value and the remaining $14 is to be covered from additional paid in capital.

(3) (i)

Income Summary A/c         Dr.  $147,000

To Retained Earnings                                 $147,000

(To record closing entries)

(ii)

Retained Earnings A/c       Dr. $73,000

To Retained Earnings appropriated on plant expansion     $73,000

(To record appropriated retained earnings)

4 0
3 years ago
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