Answer:
A. Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B.
2. Dr Cash 5850
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
Cr Equipment 360
Explanation:
A. To Correct the errors by reversing the incorrect entry and Preparation of the correct entry.
Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B. To Correct the errors without reversing the incorrect entry
2. Dr Cash 5850
($6500-650)
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
(510-150)
Cr Equipment 360
Answer: The following statements is true: <u><em>The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity.</em></u>
Unamortized discount amount is decreased from balance at provision to a nil balance at due date. This is so , as it will be liquidated over entire bond’s life and thus will reach $ 0 maturity.
<u><em>Therefore, the correct option is (c).</em></u>
Answer:
a) The effect the rental activity has on Adelene's AGI is $0.
b) The total rental income is less than the total expenses for the year, so the reportable rental income is $0.
Explanation:
a)
particulars amount amount
rental income $5,000
property taxes $3,800
mortgage interest $7,500
utilities $3,700
insurance $2,500
repairs $2,100
depreciation $15,000
total deduction $34,600
AGI $0
Therefore, The effect the rental activity has on Adelene's AGI is $0.
b)
particulars amount
Real property taxes $3,800
mortgage interest $7,500
utilities $3,700
insurance $2,500
repairs $2,100
depreciation $15,000
total expenses $34,600
Therefore, The total rental income is less than the total expenses for the year, so the reportable rental income is $0.
Answer: The higher the principal, the higher the total cost of the loan
Explanation:
From the chart shown we can see that the loan with a higher principal has a higher total cost than the loan with the smaller principal.
This happens because the interest rate attached affects larger figures more than smaller ones. 6.47% of $6,000 is $389 which is larger than 6.47% of $5,000 which is $324 (calculating the cost of a loan is more cumbersome than this but this shows the effect as well).
When compounded overtime, this difference will be even more and thus shows that larger principals cause larger total costs.
If the questions are “would
I choose to buy the book in the first place”, and “Would I sell the book at the
end of the course”, the answer to both questions is yes. The benefit of buying
the book for the course is $400 dollars, which is greater than the sales price
of $250. Thus, I would buy the book. At the end of the course, the benefit of
keeping the book is $50, while my potential sales price is $125 (50% of 250).
Thus, I can sell the book for more than it is worth to me, so I will sell the
book at the end of the course.
