Answer: Interest Maturity Date
(a) 78110×7%×(60/360) = $911 August 9
(b) 46200×8%×(90/360)= $924 October 12
(c) 11700×9%×(75/360) = $219 July 11
Explanation:
To compute the interest we apply the following formula:
Interest= (Principal) × (Interest Rate) ×(Terms ÷360)
For the Maturity date, we add Terms to the Date of note .
By using the above formula for the given table, we get the following values
Interest Maturity Date
(a) 78110×7%×(60/360) = $911 August 9
(b) 46200×8%×(90/360)= $924 October 12
(c) 11700×9%×(75/360) = $219 July 11
Answer:
$20,000 ordinary gain
Explanation:
Data provided in the question:
Cash proceeds from Selling of the equipment = $50,000
Purchasing cost of the equipment = $60,000
Depreciation expense = $30,000
Now,
The book value of the equipment
= Purchasing cost of the equipment - Depreciation expense
= $60,000 - $30,000
= $30,000
Since,
the amount of proceeds from sales is higher than the book value of the equipment
Therefore a gain will be recognized
The amount of Gain = proceeds from Selling - book value
= $50,000 - $30,000
= $20,000
Hence,
$20,000 ordinary gain
Answer:
a. Cash payment (or an obligation to pay cash) occurs before the expense recognition.
Explanation:
Prepayments are amounts paid to a business before goods or services are received. This means that a prepayment is the payment of an obligation, bill, or expense before its due date, which is therefore, also before the expense recognition.
The correct answer is alternative a. Cash payment (or an obligation to pay cash) occurs before the expense recognition.
B. A credit union is a nonprofit entity; a retail bank is a For-profit entity.
Answer:
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Explanation:
Let's check the utility that Susie gets from consuming these products.
The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1
The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1
But now the price the price for massage has come down to $15. The ratio of their prices would be
20/15 = 1.333
1.3 is greater than 1
So she should substitute golf for massages
