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nadya68 [22]
3 years ago
10

On January 1, 2017, Teal Furniture Co. borrowed $6,100,000 (face value) from Gary Sinise Co., a major customer, through a zero-i

nterest-bearing note due in 4 years. Because the note was zero-interest-bearing, Teal Furniture agreed to sell furniture to this customer at lower than market price. A 10% rate of interest is normally charged on this type of loan. Prepare the journal entry to record this transaction.
Business
1 answer:
Brilliant_brown [7]3 years ago
7 0

Answer:

Explanation:

Dr Cash $6100000  

Dr Discount on notes Payable $1933620  

     Cr Notes Payable  $6100000

     Cr Unearned Revenue  $1933620

Discount on Notes Payable :

n=4

FV =6100000

I = 10%

PV= $6100000 - ($6100000 * PVIF)

= $6100000 - ($6100000 * 0.68301) = $4166382

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A buyer contracts to purchase a property from a seller for $212,000. Two weeks before closing, a buyer's agent for another compa
ehidna [41]

The listing associate should present the offer to the seller as a potential backup offer for further negotiation.

<h3>Who is a seller?</h3>
  • A seller is any person or company who sells a product, service, or financial asset.
  • Short selling is the practice of borrowing securities that are not held in order to sell them and then repurchase them at a reduced price.
  • A "writer" is a seller of options who collects the premium from the buyer.
<h3>What is an offer?</h3>
  • In exchange for something else, a commitment to do or refrain from doing something.
  • An offer must be worded and delivered in such a way that a reasonable person would expect its acceptance to result in a binding contract.

Therefore, the listing associate should present the offer to the seller as a potential backup offer for further negotiation.

Know more about a seller here:

brainly.com/question/906651

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7 0
2 years ago
a. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlim
lidiya [134]

Answer:

The statement is: True.

Explanation:

Partnerships are organizations that share ownership of two or more people. Corporations, on the other hand, are owned by shareholders who decide how and who will run the business. Partnership owners are individually liable, implying that the owners' assets can be taken away in front of the debt.  

Debt or legal responsibility in companies is not individual. Liability is only dealt with at the company level. In reality, partnerships require reorganization when one of the partners is quitting or passing away, something that does not happen to corporations. For these factors, the majority of associations find it difficult to raise significant amounts of funds relative to companies.

7 0
3 years ago
Me. Gareth owns a toy-manufacturing company. Which of these items in his company is an intermediate good?
kakasveta [241]
Well it is a toy manfacturing company and the intermediate good would be a toy plane
5 0
3 years ago
Read 2 more answers
poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year. she is aware
pshichka [43]

In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.

<h3>What is interest reinvestment risk?</h3>

Reinvestment rate risk  can be described as the risk that should be considered in the case whereby the investor  have the reason to carry out  reinvestment in regards with the future cash flows  which could come inform of a  lower return  as a result of the interest rate declines.

It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.

Read more about risk at:

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4 0
1 year ago
ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel City, Pennsylvania. A marke
hoa [83]

Answer:

The estimate value of the subject property is $8,269,200

The other information that would be desirable in reaching a conclusion:

The closeness of the property to central business districts as the closer it is the higher the asking price.

The estimate was solely based on revenue, the applicable costs have been ignored.

The average taken might not be a good indication for the subject property because the property might have unique features

Explanation:

The formula for Gross Rent Multiplier is given  Property Price / Gross Monthly Rental Income.

In determining the estimate value of the subject property ,we calculate the gross rent multiplier of the new property,then multiply it  with the annual rental income.

In ascertaining the GRM of the new property we take the average GRM of the two similar properties in the same area.This is because the new property judging from number of units, lies in-between the other two properties.

GRM for Oaks

GRM=$9000000/($550*140)

GRM =116.88

GRM for Palms

GRM=$6,600,000/($650*90)

GRM =112.82

The average GRM=(116.88+112.82)/2

                               =114.85

Subject property price=114.85*(120*$600)

                                     =$8,269,200

4 0
3 years ago
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