Answer:
Explanation:
Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively
Bad way: paying your balances late or not at all is bad for your credit.
Answer:
$24,000
Explanation:
From the time an asset is acquired until the time it is sold, an asset experiences a number of events which causes an increase or decrease of its total value. Th adjusted basis of a given asset, takes the base price of an asset and adjusts it for changes in value reflecting enhancements and or depreciation. For instance, a given asset purchased for $100, depreciates by $10 and has an improvement of $60 would have an adjusted basis of $100 - $10 + $60 = $150.
Now when Mary bought her furniture, the adjusted basis was $20,000. At the time of exchange, the fair market value of the furniture is $4,000 whereas Mary also gave $4,000 to the dealer in the transaction. This $4,000 changes the value ans is added to the previous adjusted basis of $20,000.
Mary's adjusted basis in the new furniture after the exchange is:
= $4,000 + $20,000
= $24,000
Answer:
Revenues to be understated.
Explanation:
The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.
In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.
When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and the amount is less than the true amount.
The adjusting entry that should be done is:
Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.
Answer
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
$282,706
Explanation:
Calculation to Determine the purchase price of the house
First step
In order for us to determine the purchase price of the house we would be using TVM Calculation to find the PMT
Hence,
PMT =
PV = 200,000
FV = 0
N = 240
I = 0.084/12
Thus,PMT = $1,723.01
The Second step will be to Calculate the Loan Amount Using TVM Calculation,
PV =
FV = 0
PMT = -1,723.01
N = 360
I = 0.084/12
Thus, PV = $226,164.98
Last step is to Determine the purchase price of the house
Using this formula
Purchase price=PV/(100%-20% down)
Let plug in the formula
Purchase price =226,164.98/(0.80)
Purchase price = $282,706
Therefore the purchase price of the house will be $282,706
