Answer:
cash 16,930
note receivable 15,000
interest revenue 1, 930
Explanation:
Pozzi works his accounting under cash basis. This means it do not recognize any interest revenue over the past of time. It will recognize the gain on the loan entirely at maturity, when the cash is received.
Therefore his journal entry at maturity will be:
a debit to cash forthe received amount
a credit to note receivable, to write-off the balance
and a credit to interest revenue to recognize this gain.
Answer:
e)$100,000
Explanation:
Generally, in an economic system, the curve of demand and supply will determine the economic pay rent. The economic pay rent will definitely increase in the first sets of crane operators such as 209 with an economic rent of $100,000. Therefore, we can conclude that the number of crane operators present in the economic system also influence the economic rent.
Answer:
The cost of newly issued common stock will be 5.8% after incorporating the effect of flotation cost.
Explanation:
WACC is the cost of capital of all the sources of finance. This cost of capital should consider all the sources of finance. Jana should include long term debts and equity financing costs to identify the Weighted average cost of capital. Preferred stocks are also added in the calculations.
Answer:
Price and quantity of chickens sold will increase.
Explanation:
Due to the prevalence of the mad cow disease, demand for cow meat will go down. Since chicken is a substitute for cow meat and there is a breed that grows twice as much with the same feeds, the demand for chicken will rise.
In economics when other factors apart from price changes it results in demand shift. In this instance demand will shift to the right.
As illustrated in the attached diagram, there will be higher quantity demanded at higher prices than before.
Answer:
The total rental cost is $8476 and The total buying cost is $8711.
Explanation:
total rental cost = Annual rent + nsurance + Interest lost on security deposit
= 8130 + 220 + 126 + (1400*9%)
= $8476
Therefore, The total rental cost is $8476.
total buying costs = Annual mortgage payments + Property taxes + Insurance/maintenance + Interest lost on down payment/closing costs - Growth in equity - Estd. Annual appreciation - Tax savings on Mortgage interest - Tax savings on property taxes
= 10550 + 2080 + 1800 + (5100*9%) - 600 - 2450 - (9950*26%) - (2080*26%)
= 10550 + 2080 + 1800 + 459 - 600 - 2450 - 2587 - 541
= $8711
Therefore, The total buying cost is $8711.