Answer:
Creditor beneficiary
Explanation:
The first contract is between Claudia and Clifford, in which Clifford is the debtor to the creditor Claudia.
This means that Claudia holds a legal contractual right to receive a payment from Clifford.
Now there is a second contract between Claudia and Friendly Paving Co. this is basically the agreement to install driveway. For this Claudia has to pay to Friendly Paving Co.
For this if she transfers her right of receiving the payment from Clifford towards Friendly Paving co. then she announces Friendly Paving Co. to be a creditor beneficiary.
Answer:
Aug 2 2013 Notes Receivable 6000 Dr
Accounts Receivable 6000 Cr
Oct 31 2013 Interest Receivable 180 Dr
Interest Revenue 180 Cr
Oct 31 2013 Cash 6180 Dr
Notes Receivable 6000 Cr
Interest Receivable 180 Cr
Explanation:
When the note is received, the customer account will be closed and accounts receivable will be credited while a new asset of notes receivable will be created and notes receivable is debited.
The interest on notes receivable is calculated assuming a 360 day year and the 12% is annual interest rate.
The interest on note is 6000 * 0.12 * 90/360 = $180
The interest is income so wull be credited while as it is receivable, the interest receivable will be debited.
On 31 October when the note is honored and cash is received, it will be total of principal + interest so cash = 6000 + 180 = 6180
As a result, the assets notes and interest receivables will be closed and credited against cash.
Answer:
$709,100
Explanation:
Cost of the building = $30150000
Average accumulated expenditures = $12500000
Actual interest = $1230000
Avoidable interest = $604000
Salvage value = $2390000
Useful life = 40 years
Depreciation expense for the first full year:
= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life
= [($30150000 + $604000) - $2390000] / 40
= [$30754000 - $2390000] / 40
= $28364000 / 40
= $709,100
So, the depreciation expense for the first full year using the straight-line method is $709,100.
Answer:
balance after reconciliation 13,684 dollars
Explanation:
Bank Statement balance: 10,740
deposit in transit: 5,300
outstanding checks (2,356)
Adjusted balance 13,684
Cash Account: 11,697
EFT collected 2,820
missing check (443)
bank charge (90)
NSF (300)
Adjusted balance: 13,684
We adjust the bank statemnt for the deposit in transit and outstading check as the bank is unware of these.
The cash blaance account is adjsuted for the collection and fees ofthe bank. a mistake we could made (like missing a check) and the NSF as the company assume it was collected when it wasn't, so the company has less cash.
Answer:
The maintenance call will be for:
$20,000.
Explanation:
Operating a margin account means that the investor is permitted by her brokerage firm to buy securities with borrowed funds (or the broker's funds). The maintenance call is the requirement made on the investor with this margin account (by her broker) to raise additional funds to ensure that the margin account is fully funded when it has reduced in value. The investor with the above margin account is supposed to have a credit balance (equity) of $24,000.
