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Paladinen [302]
3 years ago
6

Assume that the bank says Frank can have the money and would like to work with him on the type of debt that he will be incurring

. The bank says he can have it as a line of credit (see footnote) at 5% interest, a short-term loan of two years at 7% interest, or a five-year loan at 10% interest, or a combination of these types of loans. What would you suggest and why? And remember that since Frank is a sole proprietor, he does not get a paycheck but is instead pay from the profits of the store, which also has to be used to pay back the loan.
Business
1 answer:
IceJOKER [234]3 years ago
7 0

Answer:

It is better for Frank, to go for a line of credit

Explanation:

It is better for Frank, to go for a line of credit, as this will enable him to have the lowest interest payment.  This will also help him to draw for his services and also enable him to be repaying the in small amounts so that the operations are not affected.

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Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
Romashka [77]

Answer:

Amount of Factory Overhead = 254,340

Explanation:

Computation of overhead:

Amount of Factory Overhead = 157% of Direct labor used

Amount of Factory Overhead = 157% (162,000)

Amount of Factory Overhead = 254,340

Journal entry.

Account title and explanation        Debit Credit

Work in Process Inventory                $254,340  

Factory Overhead                                     $254,340

6 0
3 years ago
In a market economy,
stiks02 [169]

Answer:

The correct answer is letter "D": supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.

Explanation:

In a Market Economy, economic decisions and prices are determined by market forces rather than by central planning. Market forces refer to the collective effects of all the decisions made by individuals participants in the economy such as consumers and businesses according to their free will.

In other words, supply and demand are the regulators of a Market Economy determining prices also allocating scarce resources.

7 0
3 years ago
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic rec
WITCHER [35]

Answer:

Assume the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

    Cr Sales revenue 36,759.26

   Cr Discount on notes receivable 2,940.74

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021.

Dr Cash 39,700

    Cr Notes receivable 36,759.26

    Cr Interest revenue 2,940.74

Assume instead that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

   Cr Sales revenue 34,036.35

   Cr Discount on notes receivable 5,663.65

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 33,900

    Cr Sales revenue 33,900

Explanation:

Non interest bearing notes must be recorded at present value, so we need to determine the present value of the payment:

Payment due December 21, 2021, PV = $39,700 / (1 + 8%) = $36,759.26

Payment due December 21, 2022, PV = $39,700 / (1 + 8%)² = $34,036.35

We use the discount on notes receivable account (contra asset account) to decrease the net value of notes receivable.

8 0
3 years ago
First developed because of technological advances in human societies that created surplus resources.
alisha [4.7K]

Social first developed because of technological advances in human societies that created surplus resources. deviance is the kind of deviance that societies do not sanction using laws.

<h3>What is surplus resources?</h3>

Surplus is the amount of an asset or resource that exceeds the amount used. To calculate consumer surplus, simply divide the consumer's actual price by the amount they were willing to pay.

When you have more of something than you need or intend to use, you have a surplus. For example, if you cook a meal and there is food left over after everyone has eaten, you have a surplus of food.

A consumer surplus and a producer surplus are both components of an economic surplus. These two types of surplus are distinct, but both represent a specific gain for either the consumer or the producer.

To know more about surplus resources follow the link:

brainly.com/question/25219346

#SPJ4

6 0
1 year ago
GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018, GoodBuy sold $960,000 of gift c
balu736 [363]

Answer:

$849,000 gift card revenue should GoodBuy recognize in 2018

Explanation:

gift cards revenue of GoodBuy recognized in 2018

=  gift cards redeemed + remaining gift cards

= $810,000 + $39,000

= $849,000

Therefore, $849,000 gift card revenue should GoodBuy recognize in 2018

3 0
3 years ago
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