Given:
3 year loan
$2,075 loan amount
10.7% Loan APR
*no payment for the first 11 months.
3 years is equivalent to 36 months.
36 months - 11 months = 25 months.
Colton must make 25 monthly payments to pay off his loan.
Usually, businesses can give this kind of promo because the interest in the months of no payments have already been added in the list price of the product. Thus, ensuring that the company will always profit from this promotion.
It is a statement of the owners equity. I hope this helps :)
Answer:
$96,000
Explanation:
Production 26,000 units
<u>Materials Purchase Budget</u>
Production Materials Required (5×26,000 units) 130,000
Add Budgeted Closing Materials (50,000×20%×5) 50,000
Total Materials 180,000
Less Budgeted Opening Inventory (4,000×5) (20,000)
Budgeted Materials 160,000
Material Cost per pound $0.60
Total Material Cost $96,000
Therefore, the materials purchases budget will be for the month ending April 30 will be $96,000.
Answer:
The journal entries are as follows:
(i) On March 31,
Finished Goods A/c Dr. $56,400
To Work in Process $56,400
(To record the completion of the two jobs)
(ii) On March 31,
Cash A/c Dr. $38,000
To sales $38,000
(To record the sale Job 10)
(iii) On March 31,
Cost of goods sold A/c Dr. $21,400
To finished goods $21,400
(To record the cost of the job sold)
Answer:
4. Estimates the decrease in the value of capital goods due to wear and tear over the year.
Explanation:
In accounting terms and in the business world, depreciation is defined as the systematic loss or reduction in value of a fixed asset or capital goods over time due to wear and tear. It is used in estimating the useful life or life expectancy of the asset. Examples of those fixed assets include, buildings, furniture, tractors, etc.
