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andreev551 [17]
3 years ago
13

On July 1, 2021, Markwell Company acquired equipment. Markwell paid $185,000 in cash on July 1, 2021, and signed a $740,000 noni

nterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 6% reflects the time value of money for this type of loan agreement.
Which of the following should be included in the journal entry on July 1, 2021?

a. Credit: Notes payable, $698,116.
b. Debit: Equipment, $925,000.
c. Debit: Discount on notes payable, $41,884.
d. Credit: Notes payable, $698,116 and Debit: Discount on notes payable, $41,884.
Business
1 answer:
Alenkasestr [34]3 years ago
7 0

Answer:

c. Debit: Discount on notes payable, $41,884.

Explanation:

The journal entry is shown below:

Equipment    $883,116  

Discount on Notes payable $41,884  ($740,000 - $698,116)

        To Notes payable       $740,000  

        To Cash                       $185,000

(Being the amount paid in cash and note payable is recorded)

Working note

= Note payable amount × PVF factor at 6% for one year

= $740,000 × 0.94340

= $698,116

For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets

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nignag [31]

Answer:

The correct answer is C.

Explanation:

Supposing that more is preferred to less, Maria would never choose a point where she's below her budget line. That is, Maria will spend all of her rent.

Therefore we can already discard possibilities like:

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The individual is not maximizing utility is she were to choose this bundle.

  • B. Because M=6*(4)+3*(6)=42 ⇒ $42>$36

This bundle is beyond what Maria can afford.

Further, assuming that Maria has convex preferences, she'll choose a point where she buys more of both goods rather than specializing in the consumption of one of them. That leaves bundle D aside over bundle C because even though both bundles satisfy her budget condition M=$36, bundle C provides more utility to Maria than bundle D for being located in a more centric solution along her budget line.

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3 years ago
a manager has been asked to approve a marketing campaign that promotes food products to children and is concerned that the food
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The ethical decision-making metric will allow the manager to Disregard personal ethical considerations in the decision-making process.

In psychology, decision-making (also spelled decision making and decisionmaking) is considered the cognitive method resulting in the choice of a belief or a course of action among many potential various options. It can be either rational or irrational. The decision-making process could be a reasoning process supported by assumptions of the values, preferences, and beliefs of the decision-maker. Every decision-making process produces a final choice, which can or might not prompt action.

Research regarding decision-making is additionally printed below the label problem solving, notably in European psychological research. Decision-making can be regarded as a problem-solving activity yielding an answer deemed to be optimal, or a minimum of satisfactory. it's so a process that may be a lot or less rational or irrational and can be based on explicit or tacit knowledge and beliefs.

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8 0
1 year ago
"Roger has just lost a lawsuit and has agreed to make equal annual payments of $14,200 for the next 8 years with the first payme
german

Answer:

26.22

Explanation:

Total Payments = $14,200 X 8 Instalments

=$113,600

Interest = Total Payments - Initial Liability

= $113,600 - $90,000 = $23,600

Interest Rate = $,23,600/$90,000X 100

=26.22%

5 0
3 years ago
Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that w
AleksandrR [38]

Answer:

Explanation:

a. Break even in unit sales =  (Fixed expenses ) ÷ (Contribution margin per unit)

= $1,890,000 ÷ ($14,000 - $9,800)

= 450  units

b. Margin of safety = Expected sales - break even sales

= ($14,000 × 600) - ($14,000 × 450)

= $2,100,000

Contribution margin  = Sales - Variable cost

= ($14,000 × 600) - ($9,800 × 600)

= $2,520,000

Profit before earning and tax  = Contribution margin - Annual fixed cost

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= $630,000

c. Degree of operating leverage = Contribution ÷  Profit before earning and tax

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5 0
3 years ago
Explicit costs are payments the firm makes for outputs such as desks for its employees, whereas implicit costs are expenditure c
VladimirAG [237]

Answer:

The correct answer is: inputs such as wages and salaries to its employees, whereas implicit costs are non-expenditure costs that occur through the use of self owned resources such as foregone income.

Explanation:

The implicit costs. Also known as opportunity costs have to do with alternative earning options, or money that we no longer receive when performing certain commercial actions.

A company incurs implicit costs when it waives an alternative action but does not make a payment. Implicit costs of a company are:

  • The use of the company's own capital (money or assets).
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Explicit costs.  They are what we usually see and are easy to identify. Even if they can present some complication for their determination, it is possible to identify them thanks to the business operation itself.

Explicit costs are paid with money. In a food company the costs recorded by the company accountant are the explicit costs, for which the company disburses cash, such as wages and salaries, truck maintenance, tolls, service payments, and so on.

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