Question 4 (5 points)

One prime example would be when you go to college you need to make decisions whether to keep the money or give it away for some fragile reasons/needs. Maintaining a checking account instills the habit to grow & safeguard the savings you might make working after school. Just my two cents! :)

3 0

2 years ago

Juan purchased an insurance policy on his house that did not protect against vandalism or burglary. An arsonist burned down the

son4ous [18]

Answer:

Hi

The insurance company should not pay as it is explained that the insurance policy did not cover against vandalism or theft, and a fire is the product of an act of vandalism.

Explanation:

To avoid this type of problem, there are the multi-risk policies of the home, which offer coverage for damages due to vandalism, to cover the damages caused by malicious intent by third parties. This coverage usually includes damages caused by people other than the policyholder, their relatives, employees or people living in the insured home. Some insurers include damages caused by tumultuarial actions in activities of meetings or demonstrations, as well as the existence of legal strikes, unless the aforementioned actions had the character of a mutiny or popular uproar. But we must consider that not all vandalism situations are covered by insurance, and situations such as graffiti, inscriptions, graffiti drawings are usually not covered, but depend on each specific policy.

7 0

2 years ago

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $79,000 to an employee of the company and r

OLEGan [10]

Answer:

a.

1 July 2017 Notes receivable $79000 Dr

Cash $79000 Cr

b.

31 Dec 2017 Interest receivable $3950 Dr

Interest revenue $3950 Cr

c.

30 June 2018 Interest receivable $3950 Dr

Interest Revenue $3950 Cr

1 July 2018 Cash $7900 Dr

Interest receivable $7900 Cr

d.

1 July 2018 Cash $79000 Dr

Notes receivable $79000 Cr

Explanation:

a.

The receipt of note against issuing loan will cause a credit to cash against notes receivable.

b.

The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.

The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950

c.

First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950

Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.

d.

The cash will be debited and notes receivable account will be closed by crediting it.

8 0

2 years ago