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Law Incorporation [45]
3 years ago
7

Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January 1, 2021. The note requires monthly in

stallment payments of $2,416.60 What journal entry will be recorded for the first month’s payment on January 31, 2021?
Multiple Choice

Debit interest expense $1,500; debit notes payable $916.60; credit cash $2,416.60

Debit notes payable $625; debit interest expense $1,791.60; credit cash $2,416.60

Debit interest expense $625; debit notes payable $1,791.60; credit cash $2,416.60

Debit notes payable $1,500; debit interest expense $916.60; credit cash $2,416.60
Business
1 answer:
kirza4 [7]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

The Journal entry is as follows:

Interest expense A/c Dr. $625

Note payable A/c       Dr. $1791.60

To cash                                            $$2,416.60

(To record the first month’s payment on January 31, 2021)

Working notes:

Monthly interest expense:

= (Note payable × Interest rate per annum) ÷ 12 months

= ($125,000 × 6%) ÷ 12 months

= $625

Note payable = $2,416.60 - $625

                       = $1,791.60

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If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change
dimaraw [331]

Answer: Option (A) is correct.

Explanation:

Given that,

Money supply increases (M) = 12 percent

Velocity decreases (V) = 4 percent

Price level increases (P) = 5 percent

Real GDP (Y) = ?

According to the quantity theory of money,

Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y

                                                         12% - 4% = 5% + Percent Change in Y

                                    Percent Change in Y = 8% - 5%

                                                                         = 3%

Therefore, change in real GDP must be 3%.

6 0
3 years ago
LPM company is a furniture 5 points manufacturer having a current market price of $70 per share. Mrs. Jennifer is a warrant hold
nikklg [1K]

Answer:

-$14 per share

Explanation:

The exercise value is the monetary value of Mrs. Jennifer's call option if she was going to exercise it. The exercise value is calculated by subtracting the current stock price from the strike price = $60 - $74 = -$14.

Since no one would exercise a stock warrant knowing that they will lose money, we can expect that Mrs. Jennifer does not exercise her call option. If she really wanted to purchase a stock from LPM it would be cheaper to buy it at its current market price.

8 0
3 years ago
If the reserve requirement of a bank is 33%, then $100 of MO will lead to how much of M1?
lesantik [10]

If the reserve requirement of a bank is 33%, then $100 of MO will lead to  $300 of M1. Thus, option (a) is correct.

What is bank?

The term bank refers to the financial institution offering the services related to the term money. The bank is manage financial system to handling accounts and manage the cash.

The bank is 33%

Money Multiplier= \frac{1}{Reserve Requirement}

Money Multiplier= 1/33%

Money Multiplier = 3.03

Money Multiplier = 3 (Approximately)

M1= Money Multiplier×M0

M1= 3×100

M1 = $300

$100 of M0 will lead to $300 of M1.

As a result, the MO of the bank can lead to the $300. Therefore, option (a) is correct.

Learn more about on bank, here:

brainly.com/question/14042269

#SPJ1

Your question is incomplete, but most probably the full question was

O $300

O $33

O $1000

O $330

5 0
2 years ago
On June 1 of the current year, Jack and Angie purchased a rental beach house for $900,000 and rented it right away. Of that amou
nalin [4]

Answer:

a. $5,910

Explanation:

The computation of the deduction amount for depreciation is shown below:

= (Rental beach house - the amount of the land value) × depreciation rate

= ($900,000 - $600,000) × 1.97%

= $300,000 × 1.97%

= $5,910

Refer to the depreciation table and we assume the year would be 1 and the recovery period is 19 years is 1.97%

7 0
3 years ago
Which activity is not allowed in a 3 compartment sink
ryzh [129]

Three compartment sinks are used commercially by hotels or restaurants.

Each compartment in the sink is used for separate purpose.

First compartment is used for Washing the dishes, second one is used to rinse the dishes and the third one is used to sanitize the washers' hands.

The activities that are not allowed in these compartment are washing of cleaning clothes, washing of meat or vegetables, hand washing, throwing of wastes etc

5 0
3 years ago
Read 2 more answers
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