Answer:
The borrower records its receipt of cash and new liability with this entry
Jan 1 Notes Receivable $10,000 Dr.
Sales / Accounts Receivable $10,000 Cr.
Received Note of 3 months with 9% interest
The entry would credit to Sales if it is received against sales or credit to account receivable isf it is received against accounts receivable for a further time period as the case may be.
Answer:
Correct option is (c)
Explanation:
Nominal interest rate is the sum of real interest rate and inflation. The lender charged nominal interest rate of 15% expecting inflation to be 10% in the following year. However, inflation was 12%. So, nominal rate becomes 17% (12% + 5%).
The lender should have charged a nominal interest rate of 17% instead of 15%. Now, he has to bear the loss of 2%. Borrower on the other hand benefited as he is paying lower interest rate than what is prevailing in the market.
Answer:B. Unenforceable as a violation of public policy.
Explanation: The contract which Marilyn entered with the buyer of her firm is Unenforceable as a violation of public policy. Under Normal public policy no one should be Prevented from going into any business once it is Legal and was done According to the laws of the land. In a capitalist Economy like the United States of America, private ownership of Businesses is encourage,if Marilyn finally opens a new travel agency,it will not be enforceable by the law to prevent her or stop her Business.
Answer:
Raven
The variable overhead rate variance is:
$12,940.20
Explanation:
Standard variable overhead rate = $25 per hour
Variable overhead cost = $217,700
Direct labor hours = 8,190
Units produced = 300
Actual variable overhead rate = $217,700/8,190 = $26.58 per hour
Variable overhead rate variance = ($26.58 - $25) * 8,190
= $12,940.20
b) The variable overhead rate variance is the difference between the actual variable manufacturing overhead incurred by Raven and the standard variable overhead that was expected, based on the actual number of hours worked.
