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sleet_krkn [62]
3 years ago
9

​(Related to Checkpoint​ 18.2) ​(Estimating the cost of bank​ credit) Paymaster Enterprises has arranged to finance its seasonal

​ working-capital needs with a​ short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of 10 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$90 comma 000 for a period of 2 ​months, what is the annualized cost of the bank​ loan?

Business
1 answer:
CaHeK987 [17]3 years ago
7 0

Answer:

answer for the question:

​(Related to Checkpoint​ 18.2) ​(Estimating the cost of bank​ credit) Paymaster Enterprises has arranged to finance its seasonal​ working-capital needs with a​ short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of 10 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$90 comma 000 for a period of 2 ​months, what is the annualized cost of the bank​ loan?

is given in the attachment.

Explanation:

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Select all that apply On December 1, Christy Co. accepted a 60-day, 6%, $1,000 note due January 30. On December 31, the appropri
kykrilka [37]

Answer:

Notes Receivable for $1,000. Cash for $1,010. Interest Revenue for $5.  Interest Receivable for $5.

Explanation:

The journal entry to record the receipt of the payment is shown below:

Cash Dr $1,010

     To Interest receivable  $5 ($1,000 ×6% × 30 days ÷ 360 days)

     To Interest revenue $5

     To Note receivable $1,000

(being the receipts is recorded)

here cash is debited as it increased the assets and credited the interest receivable, interest revenue and note receivable as it increased the assets and revenue accounts

6 0
3 years ago
On June 5, a company purchases 280 units of inventory on account for $28 each. After closer examination, the company determines
fgiga [73]

Answer:

June 5, 202x, 280 units purchased on account

Dr Merchandise inventory 7,840

    Cr Accounts payable 7,840

280 units x $28 per unit = $7,840

June 9, 202x, 30 defective units are returned

Dr Accounts payable 840

    Cr Merchandise inventory 840

30 units returned, so accounts payable decreases by 30 x $28 = $840

June 16, 250 units sold on account

Dr Accounts receivable 12,750

    Cr Sales revenue 12,750

Dr Cost of goods sold 7,000

    Cr merchandise inventory 7,000

250 units sold at $51 = $12,750

COGS = 250 units x $28 = $7,000

7 0
3 years ago
What are the pros and cons of relocating a small or midsized manufacturing firm (that makes mature products) from the united sta
Darya [45]

There are usually more positive than negatives when it comes to moving manufacturing from the United States to China. It's cheaper to pay wages in China for the same type of work that someone in America would expect to be paid. Not only can you pay the workers less, you can then afford to expand and hire more people due to saving the money on American wages. Usually, you can also get products cheaper in China and cut down the cost of your product. However, with cheaper labor and materials comes cheaper quality and the quality dropping may hurt consumers willingness to buy.

5 0
2 years ago
Beginning inventory for the month contained 2,000 units that were 70 percent complete with respect to materials. During the mont
pickupchik [31]

Answer:

a. 60,600

Explanation:

Given,

The number of units completed and transferred out = 6000,

Ending inventory = 3,000,

Percentage of completed units with respect to materials = 20%,

So, the additional completed units = 20% of 3000

=\frac{20\times 3000}{100}

=\frac{60000}{100}

= 600

Hence, the weighted average equivalent units of production for materials for the month = 60,000 + 600

= 60, 600

OPTION A would be correct.

6 0
3 years ago
Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract su
Galina-37 [17]

Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment. True

Explanation:

Firms that are funded as a apart of the sharing economy are usually never as profitable as the private companies which draw more investors despite their continued success as their business models are not based on producing profits for the higher ups and have a much more horizontal structure in their firm of ownership and responsibility among the workers.

This means that their is less money in it for the investor and the administrator than it is in a top to down job which is usually the case in corporate and there is more assiduity on the work too.

6 0
3 years ago
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