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barxatty [35]
4 years ago
6

A 3-year insurance policy costing $1,164 is taken out november 1, 1995. the property was sold on may 15, 1996, and the day of cl

osing belongs to the buyer. if the buyer assumes the policy, what the should the buyer pay the seller at closing, using the 30-day month method?
Business
1 answer:
Debora [2.8K]4 years ago
7 0

To solve: If we assume there are 30 days in the month then the policy was held by the original owner from November 1st – May 15th which is 195 days. Assuming there are 30 days in the month there are 360 days in the year and that is equal to 1,080 for the insurance policy. If we divide the price of the policy, $1,164 by the amount of days the policy will be held for 1,080 then the policy is worth $1.08 a day. Next, take the amount of days the original owner held the policy and multiply it by the amount per day the policy costs (195)($1.08) = $210.60 Then, we need to subtract $210.60 from the full cost of the policy ($1,164 - $210.60) = $953.40 The buyer should pay the seller $953.40 at closing.

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Which of the following is a difference between the financial statements of a merchandising company and a service company?
Nookie1986 [14]

Answer:

The correct option is (B)

Explanation:

Cost of goods sold the cost attributed to goods produced by the organization.  Cost of goods sold is incurred by organizations that manufactures a tangible product. Service firms do not incur any cost on goods sold as they do not need any raw material to manufacture goods.

Cost of goods sold is an expense and not an asset as it is a cost incurred to manufacture assets for the organization.

Therefore, correct option is (B)

6 0
3 years ago
If a cable news channel decides to report on a senator's financial indiscretions rather than report on a piece of congressional
bagirrra123 [75]

Answer:

e. Agenda Setting

Explanation:

Agenda setting refers to a practice adopted by news channels to place higher emphasis on a news, and making it appear important by consistently and repetitively covering such news.

Such a practice influences an individual's thoughts not with what he/she thinks, but what he/she should think about and consider important.

Through such a practice, the news channels underline the extent to which an issue is important i.e assign significance and importance to an issue by affecting the perceptive mindset of the viewer.

So if a political issue gets covered and getting telecast too frequently, it affects the viewers interpretation regarding the sensitivity or significance of the issue.

Many a times, through agenda setting, the media indirectly feeds it's own biased views in the thought process of the viewers. So rather than making the viewer think on his own and assign weight-age, the media itself assigns importance to an issue.

In the given case, the cable news channel preferred the topic of senator's financial indiscretion over a congressional legislation which wasn't passed. So the channel emphasized upon one issue which as per it was more important than the other and thus follows agenda setting.

6 0
3 years ago
CarsRUs factors $800,000 of accounts receivable with recourse. The factor (buyer of receivables) charges a 3% finance fee and ho
Dmitry [639]

Answer:

$50,000

Explanation:

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Using this formula

Loss on sale of receivables=[(Recourse Accounts receivable*Finance fee charges)+Estimated recourse liability]

Let plug in the formula

Loss on sale of receivables=(3%*$800,000)+$26,000

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Loss on sale of receivables=$50,000

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3 years ago
Journalizing Business Transactions Prepare journal entries for each of the following transactions.
shepuryov [24]

Answer:

a.

Cash                                     $1000 Dr

    Common stock                         $1000 Cr

b.

Purchases                          $500 Dr

       Cash                                  $500 Cr

c.

Accounts Receivable               $2000 Dr

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d.

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e.

Cash                                      $2000 Dr

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a.

The cash received as a result of issuing shares is debited as cash is increasing while as the capital is increasing so common stock is credited.

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The inventory is purchased for cash so cash is credited and purchases are debited.

c.

The sale of inventory on credit means a debit to the accounts receivable account for the amount of sale and a credit to sales revenue.

d.

When inventory is purchased, we debit the purchases account and credit either cash or accounts payable.

Later on, we transfer the purchases to the inventory amount as it is purchased for the intention of sale. Thus, we credit the purchases account and debit the inventory account.

When a sale is made, we debit the cost of goods sold by the amount of inventory sold and credit the inventory account.

e.

Cash is received so it will be debit and accounts receivable be credited.

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Can a radiologist dictate a report and send it to an outside transcription agency for transcribing?
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