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cupoosta [38]
3 years ago
9

You want to purchase a new motorcycle that costs $29,800. The most you can pay each month is $510 over the life of the 78-month

loan. What is the highest APR that you could afford
Business
1 answer:
TiliK225 [7]3 years ago
4 0

Answer:20,5369%

Explanation:We know APR is the Annual Percentage Rate that is paid over a loan. If we are to pay during 78 months at most $510 each month, then we could pay in total 510*78=$39780 in the course of the six years and a half that constitute the 78 months. This means that yearly we can pay in interest $39780/6,5=$6120 each year, this represents the interest over the loaned money, i.e., the $29800. Then the APR is

\\\frac{6120}{29800} =20,5369\% annualy or 1,71141% monthly and it is the highest APR you could afford, 20.5369%

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The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances:
Anna71 [15]

Solution :

Prepare Journal entries :

Transaction General Journal                                            Debit              Credit

a                     Cash                                                           27,300

                   Accounts receivable                                    19,700

                    Service revenue                                                                    47,000

b                 Cash                                                               16,700

                  Accounts receivable                                                               16,700

c                 Cash                                                                6000

                  Common stock                                                                        6000

d                 Salaries expense                                          16,6000

                   salaries payable                                           8,100

e                 Repairs and maintenance                             11,700

                   Cash                                                                                       11,700

f                   Equipment                                                      6,700

                   Cash                                                                                        6,700

g                  Dividends                                                        1,100

                    Cash                                                                                          1,100

Prepare an unadjusted trial balance :

                            Red Storm Cleaners

    Unadjusted Trial balance, December 31, 2015        

            Accounts                                                                Debit             Credit

Cash(13500+27300+16700+6000-24700-11700-1100)   19,300

Accounts receivable (6700+19700-16700)                       9,700

Supplies                                                                              2,700

Equipment (16500+6700)                                                 23,200

Accumulated depreciation                                                                     5,600

Salaries payable                                                                                        0

Common stock (18500+6000)                                                                24,500

Retained earnings                                                                                      7,200

Dividends                                                                            1,100

Service revenue                                                                                       47,000

Salaries expense                                                                 16,600

Repairs and maintenance expense                              <u>      11,700  </u>

Totals                                                                                    84,300        84,300

Prepare adjusted entries :

Transaction   General Journal                                          Debit             Credit

1                     Salaries expenses                                        1,100

                     Salaries payable                                                                1,100

2.                  Depreciation expense                                   3,700

                     Accumulated depreciation                                               3,700

3.                 Supplies expense                                           1,000

                     Supplies                                                                             1,000

Prepare an adjusted trial balance :

                            Red Storm Cleaners

    Adjusted Trial balance, December 31, 2015        

            Accounts                                                                Debit             Credit

Cash(13500+27300+16700+6000-24700-11700-1100)   19,300

Accounts receivable (6700+19700-16700)                       9,700

Supplies   (2700-1000)                                                      1,700    

Equipment (16500+6700)                                                 23,200

Accumulated depreciation (5600+3700)                                            9,300

Salaries payable                                                                                    1,100

Common stock (18500+6000)                                                             24,500

Retained earnings                                                                                 7,200

Dividends                                                                            1,100

Service revenue                                                                                    47,000

Salaries expense(16600+1100)                                          17,700

Repairs and maintenance expense                                    11,700

Depreciation                                                                          3,700

Supplies expense                                                            <u>      1,000   </u>

Totals                                                                                    89,100        89,100  

Prepare Income statement

 RS Cleaners

Income statement, Dec 31, 2015       

Incomes:

Service revenue                                      47,000

Total Income                                           47,000

Expenses :

Dividends                             1,100

Repairs and maintenance   11,700

Salaries                                 17,700

Supplies expense                  1,000

Depreciation                         <u> 3,700 </u>

Total Expenses                                   <u>  35,200  </u>

Net Income                                            11,800              

8 0
3 years ago
The most common method for graphing the relationship between two variables is by drawing two __________ lines, where the _______
guapka [62]

Answer:

perpendicular, X-axis, Y-axis

Explanation:

Perpendicular lines are lines that intersect at 90°. lines that a perpendicular always involve a vertical and an horizontal line. the horizontal is the x-axis and horizontal is the y-axis.

Cheers.

6 0
3 years ago
Rhett corporation manufactures and sells dress shirts. each shirt (unit) requires 3 yards of cloth. selected data from rhett's m
marissa [1.9K]

Rhett corporation's  Plan on budgeted purchasing in may is 97,600 yards

Explanation:

Opening inventory of May = Closing inventory of April = 2100 yards

Budgeted production of May = 32,000 units

Closing inventory of May  = 2800 yards

Required inventory for producing 32,000 units

= 32,000 × 3 yards (per unit production of shirt) = 96,000 yards

 Plan on purchasing in may

 = Total yards needed - opening inventory + closing inventory

 = 96,000 - 2100 + 2800 = 97,600 yards

= 96,000 - 2100 + 2800 = 97,600 yards

4 0
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Answer:

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B; there are no leaves for 55.

Explanation

3 0
3 years ago
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Alex_Xolod [135]

Answer:

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Explanation:

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<u> </u>

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7 0
3 years ago
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