Answer:
The debit to lease payable on July 1, 2019 will be $ 670,741.31
Explanation:
According to the details, the present value lease payable as on July 1, 2018 is= $ 718,000
Also, the annual lease payments is = $ 102,641
With these details we are able to calculate the debit to lease payable on 2019, and the calculation is as follows
= ($ 718,000- $ 102,641) + 9% ( $ 718,000 - $ 102,641)
= $ 615,359 + $55382,31
= $ 670,741 July 1, 2019 debit to lease payable
Answer: is increased by credits
Explanation:
Revenue accounts are increased by credits because they are an equity account and equity accounts increase by credit. This is because the corresponding entry would be an asset such as cash and as the asset has to increase by being debited, revenue must be increased by credit.
Other accounts that are increased by credit include liabilities. Accounts that increase by debits apart from assets include purchases and expenses.
Answer:
D) It would not be recorded.
Explanation:
FASB means Financial Accounting Standards Board.
Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US.
No matter what kind of restriction a donor might impose, FASB standards require nonprofits to report finances in a way that makes it clear which funds have donor restrictions and which funds come without donor restrictions. FASB standards are in three categories: “unrestricted,” “temporarily restricted,” and “permanently restricted.”
Unrestricted are those items that have no donor-imposed restrictions
Temporarily Restricted are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year)
Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched.
Since the school will recieve the pledge ONLY if it is able to raise $500,000 in funds over the next year, then the pledge would not be recorded
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Answer:
Process, Physical Evidence and People
Explanation:
Marketing mix is the term which is described as the set of tactics or the actions which a business or a company follows or use in order to promote the product or the brand in the market.
And the 4 Ps of the marketing mix are Promotion, Price, Place and Product. These are related to the product of the business or the company.
For the service environment, there are 3 additional Ps which are consist of People who use the service, Process involve the processing of the service and lastly, the Physical evidence, which states the evidence for the service.
