The question is incomplete:
A borrowers expresses concern that once he signs all the documents he will be stuck with a second mortgage. A good response by a Notary Signing Agent could be to:
a. Recommend that the borrower contact his lender’s representative and provide the phone number
b. Suggest the borrower stop, take a few days to reconsider, and then reconvene once the borrower feels more comfortable
c. Recommend that the borrower sign documents now and then cancel the loan within three days if the borrower is still concerned
d. Assure the borrower that the borrower’s loan term are excellent and should continue
Answer:
a. Recommend that the borrower contact his lender’s representative and provide the phone number
Explanation:
As the borrower is concern that he will be stuck wit a second mortgage, a good response is to contact his lender's representative as that would be the appropiate person to help him understand all the conditions on his mortgage and be sure that they are good and that he will be able to pay back the loan.
The other options are not right because the borrower should reconsider but he needs to talk to the lender's representative to get all the information to be able to make a decision, he shouldn't sign the documents if he is not sure and a Notary Signing Agent is not the appropiate person to talk about the loan terms.
<u>Calculation of retained earnings beginning balance:</u>
Retained earning beginning balance can be calculated using the following formula:
Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends
Hence using the given information we can solve the equation as follows:
3,050 = Retained earning beginning balance + 1935 – 1065 - 550
3,050 = Retained earnings beginning balance +320
Retained earnings beginning balance = 3050-320 = $2,730
Hence, Retained earnings beginning balance is <u>$2,730</u>
Answer:
From all indications,it is very clear that the question requires a journal entry to record the unpaid interest.
Dr Interest expense $1125
Cr Interest payable $1125
Explanation:
This is a typical case of an omitted entry in the books of accounts,specifically it relates year-end close accounting adjustments.
Under the accrual basis, which is prevalent in the private sector,expenses are to recorded when incurred not when they are settled in cash,as result it is imperative that the above transaction needs be adjusted by debiting interest expense account and crediting same amount to interest payable account to affirm that the company has an obligation to $1125 to mortgage providers.
Answer:
Gomez Corp. Journal entry
1. 31-Jan
Dr Allowance for doubtful accounts $800
Cr Accounts receivable - C. Green $800
2. 9-Mar
Dr Accounts receivable - C. Green $300
Cr Allowance for doubtful accounts $300
3. 9-Mar
Dr Cash $300
Cr Accounts receivable - C. Green $300
Explanation:
1. On January 1 Gomez Corp was said to use the allowance method to account for uncollectibles which means we have to record the write off as uncollectibles by Debiting Allowance for doubtful accounts with $800 and Credit Accounts receivable - C. Green with the same amount.
2. On March 9, receives a payment of $300 from Green which means we have to record the accounts receivables reinstated by
Debiting Accounts receivable - C. Green with $300 and Crediting Allowance for doubtful accounts with same amount.
3. Since it receives a payment of $300 from Green on March 9 we have to record cash receipt by Debiting Cash with $300 and Crediting Accounts receivable - C. Green with $300.
Answer:
Marginal cost, average variable cost, and average total cost will increase. Average fixed cost will not change.
Explanation:
Marginal Cost is the change in total cost as a result of producing one extra unit of output.
Variable cost is cost that varies with output level. Average variable cost = variable cost / quantity produced
Fixed cost is cost that doesn't vary with the level of output produced. Average fixed cost = Fixed cost / quantity produced.
Total cost is the sum of fixed and variable cost. average total cost is total cost / quantity produced.
If the price of supplies increase, the cost of production increases and average total cost, average variable cost and marginal cost would increase.
Fixed cost would remain the same.
I hope my answer helps you
