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4 years ago

What is a mortgage?

1 answer:

5 0

<span>A mortgage is a loan made by a bank or a specialized mortgage lender given to a buyer in order to purchase a house. A mortgage is a legal agreement between the bank and the buyer in which the bank lends money to the buyer to purchase the house, and the buyer agrees to pay back the money in full with an agreed upon interest rate.</span>

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Global Commerce Corporation purchased trading debt investments for $136,000 on December 31, 2018. There is a decrease of $3,400

stellarik [79]

Answer:

A. Unrealized Holding Loss - Trading 3,400

Fair Value Adjustment - Trading 3,400

Explanation:

Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:

Dr Unrealized loss on trading security 3,400

Cr Debt investments 3,400

This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.

3 0

3 years ago

Gangland Water Guns, Inc. is expected to pay a dividend of $2.10 one year from today. If the firm's growth in dividends is expec

Lemur [1.5K]

Answer:

15%

Explanation:

Use Dividend discount model to find the required return of equity or cost of equity capital;

Return r formula;

$=\frac{D1}{P0} +g$

whereby; D1 = Next year's dividend = $2.10

P0 = Current price = $17.50

Growth rate; g = 3% or 0.03 as a decimal

Next, plug in the numbers to the formula above to calculate the cost of equity;

r $=\frac{2.10}{17.50} +0.03\\ \\ =0.12+ 0.03$

r = 0.15 or 15%

Therefore, cost of equity is 15%

3 0

3 years ago

Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp

german

Traditional income statement : Net operating income $47,000

Contribution income statement : Net operating income $25,000

Traditional Income Statement

Sales (11,000 x $16) $176,000

Cost of goods sold

(9,000 + 87,000 - 25,000) ($71,000)

Gross Margin 105,000

Selling and administrative expenses:

Selling expense

(11,000 x 1) + 22,000 $33,000

Administrative expense

(11,000 x 1) + 14,000 $25000

Net operating income $47,000

Contribution format income statement

Sales $176,000

Variable expenses:

Cost of goods sold 71,000

Selling expense 11,000

Administrative expense 11,000 ($93,000)

Contribution Margin $83,000

Fixed expenses:

Selling expense 33,000

Administrative expense 25,000 (58,000)

Net operating income $25,000

Learn more about preparation of income statement here : brainly.com/question/24498019

3 0

3 years ago

On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bush

olasank [31]

Answer:

Option (a) is correct.

Explanation:

According to the law of diminishing marginal productivity, if there is an increase in the input in the production of a certain commodity then as a result there is an increase in the output of that commodity, initially but further increase in the input will have no impact on the output of the commodity or will have a negative impact.

In our case, when farmer hires 3rd worker, the output increases by 1,400(4,400-3,000) bushels. According to the law of diminishing marginal productivity, if he hires 4 workers then there is an increase in the output but less than the 1,400 bushels.

This condition will be satisfied in the option (a), where output increases by 1,200 bushels.

7 0

4 years ago

This is the trial balance of Sandhill Co. on September 30. SANDHILL CO. Trial Balance September 30, 2022 Debit Credit Cash $23,6

mihalych1998 [28]

See full question attached

Answer and Explanation:

Find full answer and explanation attached

5 0

3 years ago