Answer and Explanation:
The journal entries are shown below:
For the month of January
Cash $480,000
To Mortgage Payable $480,000
(Being the mortgage payable is recorded)
For recording this we debited the cash as it increased the assets and credited the mortgage payable as it also increased the liabilities
For the month of February
Mortgage Payable $400
Interest Expense $4,000 {($480,000 × 10%) ÷ 12 months}
To Cash $4,400
(Being the cash paid is recorded)
For recording this we debited the mortgage payable and interest expense as it decreased the liabilities and increased the expenses and credited the cash as it decreased the assets
Now the balance left is
Beginning balance of Mortgage Payable $480,000
Less: February Deduction (400)
Ending Balance of Mortgage Payable $479,600
Correct/Complete Question:
Broker Needa leaves for vacation. In his absence, associate Wanna will be handling the escrow accounts. If Wanna errors with the accounting procedures:
A. Broker Needa's license will be revoked
B. Broker Needa's vacation may be permanent as he is ultimately responsible
C. The Commission will excuse Needa and Wanna; everyone needs a vacation
D. Broker Wanna's solely responsible for her actions
Answer:
B. Broker Needa's vacation may be permanent as he is ultimately responsible
Explanation:
Since Broker Needa is the employer of Wanna, he is ultimately responsible for the errors as the assistant works under his license. Brokers are always responsible for agents under their license.
I hope this helps.
Answer:
-$1,500
Explanation:
Calculation for the economic profit earn
Using this formula
Economic profit =Investment amount ×(Return on investment-Current interest rate)
Let plug in the formula
Economic profit =$50,000×(0.05 - 0.08)
Economic profit =$50,000×(-0.03)
Economic profit = -$1,500
Therefore you earn an economic profit of -$1,500
A conflict based on power struggle involves people fighting for control and status. A conflict based on personality difference are people who have different habits or attitudes.
Hope that helped x
