The Marchetti Soup Company entered into the following transactions during the month of June:

If a one-year adjustable-rate mortgage loan (ARM) is originally offered at 7% interest with "caps of 1 and 6," the interest rate

ozzi

Answer:

This will be false

Explanation:

Base on the scenario been described in the question, it is false because the rate can go above 8% at the first adjustment and according to how high the chosen index might rise, it can also go above 11% which is stated that it cannot, so it is false.

3 0

3 years ago

4. Wilford has developed a leg pillow for long airline flights that reduces the risk of blood clots. He isn't sure how to develo

Viefleur [7K]

To learn how people are searching online, a keyword analysis would be most relevant.

8 0

3 years ago

A higher required reserve ratio _________ the value of the simple deposit multiplier.

Sergio [31]

The answer to this question is decreases
<span>required reserve ratio refers to a certain amount of depositors' money that the banks need to have available on their hand.
</span><span>simple deposit multiplier. refers to the amount of money that the bank does not hold as excess reserve.
When the amount of cash that need to be held is lower, the amount of excess will also tend to be lower</span>

3 0

3 years ago

Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments

balu736 [363]

Answer:

a.

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

b. Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

c. Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

Explanation:

a. The journal entries, that should be recorded on January 1, and December 31, 2017, by Steel would be as follows:

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

Lease Equipment Under Capital Leases=(40,000*PVIFA(10%,Years = 40,000*4.16986))= $166,794

b. The journal entries, that should be recorded on January 1 and December 31, 2018, by Steel would be as follows:

Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

Depreciation Expense= (166,794/7)=$23,828

Interest Expense [(166,794 - 40,000)*10%]=$12,679

Lease Liability=(40,000 - 12,679)=$27,321

c. The journal entries, that should be recorded on January 1, and December 31, 2019, by Steel would be as follows:

Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. The amounts that would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement would be as follows:

Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

8 0

3 years ago

The risk that actual returns will not match or exceed expected returns is called:________a. investment risk. b. asset class risk

Alex73 [517]

Answer:

a. investment risk

Explanation:

Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".

Investment risk: We can define it as the inappropriateness between the actual and expected returns. Because on this type of risk, there may be occurrence of any losses with some probability or likelihood which will be relative the expected return.

Asset class is about the grouping process of investments which have some mutual or similar characteristics. The risk on this case is something has relative elasticity compared to another investment in the market. Usually, there is 3 groups of asset classes: equities, bonds and money market instruments.

The market risk which is called sometimes as systematic risk. This risk consider the entire market and has effects on this scale. The investor who undertook this risk will see that the factors which affect the overall performance of the whole marketplace.

Opportunity cost is the cost when you have purchased, chose or bought the product compared to another product. However, you will notice that if you buy another one you will get more value or consumer surplus but you have just bought and you missed chance. This is the opportunity cost

8 0

3 years ago