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konstantin123 [22]
4 years ago
7

Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $

36,000 at the beginning of the year at a simple interest rate of 1 percent. Wally would have paid interest of $4,320 this year if the interest rate on the loan had been set at the prevailing federal interest rate.a. Wally used the funds as a down payment on a speedboat and repaid the $36,000 loan (including $360 of interest) at year-end. Does this loan result in any income to either party
Business
1 answer:
yuradex [85]4 years ago
8 0

Answer:

Wally and Pay More Incorporated

The loan resulted in any income to Wally of $3,960 ($4,320 - $360), which would have been a cost he would have incurred had he borrowed the loan at the prevailing federal interest rate.

On the other hand, it resulted in a lost revenue (expense) of $3,960 ($4,320 - $360) which Pay More Incorporated could have earned if it had loaned it at the prevailing federal interest rate.  This expense is a compensation expense.

Explanation:

Pay More's Loan to Wally = $36,000

Interest rate = 1%

Prevailing interest = $4,320

Interest paid = $360

Difference between prevailing interest and interest paid by Wally = $3,960 ($4,320 - $360).

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Teller, a calendar year company, purchased merchandise from TechCom on November 1 of the current year. TechCom accepted Teller's
ikadub [295]

Answer:

Dr Interest Receivable $240

Cr       Interest Income             $240

Explanation:

The reason is that the Techcom company is lender and must account the lending as a loan.

The loan will be paid with the interest at the end of the period. The interest received at the end of December 31 would be the single month loan at the $4800 at the interest rate which is 10 percent here.

The Interest Income = $4800 * (10% interest rate * 2/12) = $240

The interes would be recorded for the two months which is $240 and accounted for as under:

Dr Interest Receivable $240

Cr       Interest Income             $240

And at the end of January 31, Teller will make the payment which would be accounted for as under:

Dr Cash $5260

Cr Interest Revenue  $120

Cr Notes Receivable $4800

Cr Interest Receivable $240

4 0
4 years ago
Which of the following is true of a transnational​ strategy? A. Uses licensing extensively outside of the​ "home" country B. Use
solong [7]

Answer:

The correct answer is letter "D": Exploits the economies of scale and learning.

Explanation:

Transnational strategies imply companies taking their products to different regions in the world and adapting them to each market. It is the opposite of the global strategy of entering a market by which a corporation offers the same product over all the territories where it handles operations.

<em>One of the main objectives of the transnational strategy is to lower production costs by using economies of scale, meaning production becomes more efficient providing manufacturers cost advantages. Besides, the company looks for learning diverse domestic strategies that can also be implemented in other regions keeping in mind each of them would have its own features.</em>

3 0
4 years ago
The main purpose of a balance sheet is to show
Gwar [14]

Answer:

E)a,b,and c

Explanation:

A balance sheet is among the three main financial statements prepared by a business at the end of a period.  It displays the assets of a company on one side and liabilities and equity on the other. The preparation of the balance sheet follows the accounting equation of assets equal to liabilities plus equity.

The balance sheet shows the net worth of a company by showing the total value of the firm's assets and how the assets have been financed. It indicates the current value of assets and tracts changes from period to another. The balance sheet will also indicate current liabilities and compares them to the previous period.

8 0
4 years ago
A property is sold for $350,000. The buyer has paid $12,000 as earnest money and is obtaining a 70% loan. Based on the informati
Zolol [24]

Answer:

$93,000

Explanation:

Data provided in the question:

selling cost of the property = $350,000

Earnest money paid = $12,000

Percentage of loan obtained = 70%

Now,

The amount of loan obtained = 70% of $350,000

= $245,000

Therefore,

Amount to be paid by self

= selling cost of the property - amount of loan obtained

= $350,000 - $245,000

= $105,000

Thus,

Additional cash the buyer will have to bring to the closing day

= Amount to be paid by self - Earnest money paid

= $105,000 - $12,000

= $93,000

7 0
3 years ago
What three words would you use to describe the culture you would foster at your company? explain why you chose each word to repr
VashaNatasha [74]

Transparent, involved, & Empathetic

Transparent – The employees feel a sense of trust in a transparent culture, since they can express their thoughts.

Involved – in helps us employees who have the same shared interest since we are offered a lot of on the job learning and training programs

Empathetic – Our develops need to understand how the users are interacting with our software so can they can improve the product we are selling. When our managers recognize the concerns, they are most effective in that instance.


3 0
3 years ago
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