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3 years ago

At the end of the car lease, you pay a certain amount if you decide to buy the car.. . What is this amount called?

2 answers:

6 0

At the end of a car lease, when you pay a certain amount if you decide to buy the car is called a lease end buy out. Many people choose to do this because it is cheaper than buying a new car.

Ludmilka [50]3 years ago

5 0

At the end of the car lease, you can pay a certain amount if you decide to buy the car. This amount is called the lease end buyout. If you decide to keep the car you pay the lease end buyout amount that was talked about when you first leased the car, this type of buyout attracts many consumers because they have already put money into the car for their lease contract and can save money buy purchasing their current leased vehicle.

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Requirements

Stella [2.4K]

Journal entries:

Nov. 1, common stocks issued

Dr Cash 41,000

Cr Common stock 41,000

Nov. 4, office supplies and furniture purchased

Dr Office supplies 1,200

Dr Furniture 2,300

Cr Accounts payable 3,500

Nov. 6, service revenue

Dr Cash 2,100

Cr Service revenue 2,100

Nov. 7, land purchased

Dr Land 27,000

Cr Cash 27,000

Nov. 10, service revenue

Dr Accounts receivable 800

Cr Service revenue 800

Nov. 14, payment of furniture

Dr Accounts payable 2,300

Cr Cash 2,300

Nov. 15, wages expense

Dr Wages expense 1,470

Cr Cash 1,470

Nov. 17, collection of accounts receivable

Dr Cash 500

Cr Accounts receivable 500

Nov. 20, service revenue

Dr Accounts receivable 680

Cr Service revenue 680

Nov. 25, received cash in advance

Dr Cash 1,900

Cr Unearned revenue 1,900

Nov. 28, service revenue

Dr Cash 3,100

Cr Service revenue 3,100

Nov. 29, purchase prepaid insurance

Dr Prepaid insurance 840

Cr Cash 840

Nov. 30, wages expense

Dr Wages expense 1,470

Cr Cash 1,470

Nov. 30, rent expense

Dr Rent expense 650

Cr Cash 650

Nov. 30, utilities expense

Dr Utilities expense 650

Cr Accounts payable 650

Nov. 30, dividends distributed

Dr Retained earnings 2,800

Cr Dividends payable 2,800

Dr Dividends payable 2,800

Cr Cash 2,800

Since there is not enough space here, I prepared an excel spreadsheet with the T-accounts.

In order to prepare a trial balance sheet, I must first prepare an Income Statement:

Service revenue $6,680

Wages expense ($2,940)

Rent expense ($650)

<u>Utilities expense ($650)</u>

Net income: $2,440

Retained earnings = $2,440 (net income) - $2,800 (dividends) = ($360)

STEWART CO.

BALANCE SHEET

NOV. 30, 2018

Assets:

Cash $12,070

Accounts receivable $980

Prepaid insurance $840

Office supplies $1,200

Furniture $2,300

Land $27,000

Total assets: $44,390

Liabilities and stockholders' Equity:

Accounts payable $1,850

Unearned revenue $1,900

Common stock $41,000

Retained earnings ($360)

Total liabilities and stockholders' equity: $44,390

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8 0

3 years ago

At the beginning of the period, a company reports a balance in office supplies of $450. During the period, the company purchases

Hoochie [10]

Answer:

Explanation:

Before passing the journal entry, first, we have to compute the total supplies consumed. The formula to compute the total supplies consumed is shown below:

= Beginning balance of supplies + Purchase of supplies - ending balance if supplies

= $450+ $3,400 - $900

= $2,950

Now the journal entry would be

Supplies expense A/c Dr $2,950

To Supplies A/c $2,950

(Being supplies consumed recorded)

4 0

2 years ago

The four Ps make up the marketing mix, which is the __________ set of decisions or activities that the firm uses to respond to t

Alexeev081 [22]

Answer:

clear and effective strategy comprising

Explanation:

The four Ps make up the marketing mix ,which are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus .

The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges .

Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling.

The marketing communication strategies and techniques all fall under the promotion heading. These may include advertising, sales promotions, special offers and public relations.

The place or placement deals with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product.

5 0

3 years ago

Star Corp. had the following accounts and balances in its general ledger as of December 31:

Alex

Answer:

=$ 25,500

Explanation:

cash equivalents will be petty cash + cash at bank

= 500+20,000+5000

=$ 25,500

Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.

Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.

8 0

3 years ago

On January 1, 2017, Ayayai Company purchased 8% bonds having a maturity value of $200,000, for $216,849.76. The bonds provide th

Eddi Din [679]

Answer:

1. 1/01/2017

Dr Bonds receivable 200,000

Dr Premium on bonds receivable 16,849.76

(216,849.76-200,000)

Cr Cash 216,849.76

2. Carrying amount of bonds

1/01/2017 216,849.76

1/01/2018 213,859.76

1/01/2019 210,691.35

1/01/2020 207,332.83

1/01/2021 203,772.8

1/01/2022 200,000

3. 31/12/2017

Dr Interest receivable 16,000

Cr Interest revenue 13,010

Cr Premium on bonds receivable 2,990

Explanation:

1. Preparation of the journal entry at the date of the bond purchase.

1/01/2017

Dr Bonds receivable 200,000

Dr Premium on bonds receivable 16,849.76

(216,849.76-200,000)

Cr Cash 216,849.76

2. Preparation of a bond amortization schedule.

Date Cash received Interest revenue Premium amortized Carrying amount of bonds

1/01/2017 216,849.76

1/01/2018 16,000 13,010 2,990 213,859.76

1/01/2019 16,000 12,831.59 3,168.41 210,691.35

1/01/2020 16,000 12,641.48 3,358.52 207,332.83

1/01/2021 16,000 12,439.97 3,560.03 203,772.8

1/01/2022 16,000 12,227.20 3,772.80 200,000

Workings;

1/01/2018

($200,000*8%)=16,000

($216,849.76*6%)=13,010

(16,000-13,010)=2,990

(216,849.76-2,990)=213,859.76

1/01/2019

($200,000*8%)=16,000

(213,859.76*6%)=12,831.59

(16,000-12,831.59)=3,168.41

(213,859.76-3,168.41)=210,691.35

1/01/2020

($200,000*8%)=16,000

(210,691.35*6%)=12,641.48

(16,000-12,641.48)=3,358.52

(210,691.35-3,358.52)=207,332.83

3.Preparation of the journal entry to record the interest revenue and the amortization on December 31, 2017.

31/12/2017

Dr Interest receivable 16,000

($200,000*8%)

Cr Interest revenue 13,010

($216,849.76*6%)

Cr Premium on bonds receivable 2,990

(16,000-13,010)

3 0

3 years ago