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maxonik [38]
3 years ago
10

Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happe

ns to the loan?
Business
2 answers:
laila [671]3 years ago
7 0

Answer:

A - Mike must pay the full monthly payment

Explanation:

iren [92.7K]3 years ago
4 0
<span>I this case, the loan is still valid and at that point Mike would be responsible for finding a way to pay the loan back as agreed upon in the contract. This is called co-signing, when two parties both sign for a loan together. Both parties are responsible for the loan and even though David cannot be found, the loan must still be paid and Mike would be held responsible for this.</span>
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The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.
Firdavs [7]

Answer:

1)

February 2, 2018 Provide services to customers on account for $32,600.

Dr Accounts receivable 32,600

    Cr Service revenue 32,600

July 23, 2018 Receive $22,500 from customers on account.

Dr Cash 22,500

    Cr Accounts receivable 22,500

December 31, 2018 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,525

    Cr Allowance for doubtful accounts 2,525

April 12, 2019 Provide services to customers on account for $45,600.

Dr Accounts receivable 45,600

    Cr Service revenue 45,600

June 28, 2019 Receive $6,000 from customers for services provided in 2018.

Dr Cash 6,000

    Cr Accounts receivable 6,000

September 13, 2019 Write off the remaining amounts owed from services provided in 2018.

Dr Allowance for doubtful accounts 4,100

    Cr Accounts receivable 4,100

October 5, 2019 Receive $40,500 from customers for services provided in 2019.

Dr Cash 40,500

    Cr Accounts receivable 40,500

December 31, 2019 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,850

    Cr Allowance for doubtful accounts 2,850

Allowance for doubtful accounts = $1,575 (to cancel debit balance) + [($45,600 - $40,500) x 25%] = $1,575 + $1,275 = $2,850

2)

            Cash                                Accounts receivable

Debit               Credit                   Debit               Credit

22,500                                         32,600

6,000                                                                   22,500

<u>40,500                      </u>                   45,600

69,000                                                                 6,000

                                                                             4,100

                                                     <u>                        40,500</u>

                                                     5,100

Allowance for doubtful accounts

Debit               Credit  

                       2,525

4,100

<u>                        2,850</u>

                       1,275

3) net realizable value of accounts receivable = $5,100 - $1,275 = $3,825

3 0
3 years ago
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the sell
yulyashka [42]

Answer:

The price the seller receives for the product after the tax is imposed on the buyer is $2. Seller pay tax from new eq price to the old one.

Explanation:

6 0
3 years ago
Explain how to structure discounts so that they encourage customers to spend money and keep the business profitable. Be sure to
umka21 [38]

If you offer volume discounts, it will encourage customers to buy more than that would have otherwise. For example, if each pair of socks is $5 but you offer a volume discount where customers can get 10 pairs for $30 you are encouraging them to spend more than they normally would.

7 0
3 years ago
Below are transactions for Hurricane Company during 2021. a. On October 1, 2021, Hurricane lends $7,200 to another company. The
blondinia [14]

Answer:

ACCOUNT          

interest expense  144 debit

interest payable  144 credit

rent expense        1200 debit

prepaid expense  1200 credit

unearned revenue  4600 debit

rent revenue  4600 credit

depreciation expense  3700 debit

acc dep machine  3700 credit

salaries expense  3200 debit

salaries payable  3200 credit

supplies expense  2600 debit

supplies  2600 credit

Explanation:

Interest is calculate doing:

principal x rate x time

7,200 x 0.08 x 3/12 = 144

rent

1,800 for 3 months  there is 2 expired 1,800 x 2/3 = 1,200

earned revenue on rent

11,040 x 5 monhts / 12 = 4,600

supplies:

beginning + purchase - ending = consumed supplies

600 + 3,700 - 1,700 = 2,600

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3 years ago
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GrogVix [38]
Specialization involves division of an organization's work and applies motivational theories to jobs to increase satisfaction and performance."
6 0
3 years ago
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