Stabilize the float of economy and value
Answer:
a. Ada defaults on the note.
Explanation:
An agency can be defined as a mutual relationship existing between two parties, wherein a principal authorizes the agent to act as the principal's representative or on his behalf (fiduciary role) in dealing with third parties.
The parties entering into a contractual agreement are obligated to terminate an agency relationship by placing into the agreement a time period specifying the termination. Thus, when that time elapses or expires, the agency between the parties involved ends. Furthermore, the parties involved may specify the particular purpose for which the agency is established. Once that purpose is achieved, the agency is terminated or ends.
This ultimately implies that, the legal entity or secondary liability (trustee or licensee) would be held responsible for the losses, legal claims and damages incurred by its partner in an agency, whether or not the agent's actions were authorized or unauthorized by the principal.
In this scenario, Ada is the maker of a note, on which Bart is secondarily liable. Also, the current holder of the note is Credit Instruments Company.
Since Bart is secondarily liable to Ada, it will be obligated to pay for any of the notes if Ada defaults on the them.
Hence, a trustee is liable for acts or contracts entered into by an agent when he or she gives an agent either actual authority (power of attorney) or apparent authority.
Answer:
Juen 30 2018 Cash $60000 Dr
Accumulated Depreciation $216000 Dr
Loss on Disposal-Plant Equipment $24000 Dr
Plant Equipment $300000 Cr
Explanation:
The sale of an asset requires a firm to write off that asset from the books at cost. The writing off would require the credit to the asset account at cost along with a debit to the accumulated depreciation account that is created against this asset.
We also calculate the gain or loss on disposal of asset. An asset has a gain on disposal if the cash received from its sale is more than its carrying value and vice versa.
Carrying Value = Cost - Accumulated Depreciation
Carrying value = 300000 - 216000 = $84000
The asset loss on disposal = 60000 - 84000 = 24000 loss
We debit the loss on disposal and cash received from sale to complete the journal entry
Answer:
rate of inflation during the year was 14%
Explanation:
we know here Jake loaned Elwood = $5000
time = 1 year
rate = 10 %
rate = 4 %
so here we can say this will happen when actual inflation rate is high as compare to expected inflation rate
and we have given 10 % inflation rate need and
it was high by 4 % of fewer good
so rate is total 14%
so correct answer rate of inflation during the year was 14%
CHECK COMMENTS.
First, convert 6% into decimal. 6/100 = 0.06
1000*0.06 = 60 <- that is the amount of interest.
1000 + 60 = 1,060 <- first years total.
1060*.06 = 63.6
1060 + 63.6 = 1,123.6 <- second years total.
1,123.6*.06 = 67.416
1,123.6 + 67.416 = 1,191.016
rounding off, the answer would be $ 1,191 dollars.
