Investment
institutions is a specialize in raising money (investment capital) for
governments and corporations by issuing securities such as stocks or bonds.
People buying a company's securities are buying into a portion of a company and
its earnings or income. Investment institutions offers shares or units.
Answer:
Option (A) is correct.
Explanation:
Given that,
Estimated fixed cost = $288,000
Estimated variable cost = $14 per unit
Units expects to produce and sell = 60,000
Selling price = $20 per unit
We first need to calculate the contribution margin:
Contribution margin per unit:
= Selling price - Variable cost
= $20 - $14
= $6
The break even point in units is the ratio of fixed cost to the contribution margin per unit.
Break-even point in units:
= Fixed cost ÷ Contribution margin per unit
= $288,000 ÷ $6
= 48,000 units
Answer:
1. Debit Interest Expense $7,000; debit Notes Payable $7,238; credit Cash $14,238.
Explanation:
The journal entry is shown below:
Note payable A/c Dr $7,238
Interest expense A/c Dr $7,000
To Cash A/c $14,238
(Being the first payment on the note is recorded)
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest
= $100,000 × 7%
= $7,000
And, the remaining balance left is reported in the note payable account
