When the economy enters a recession, your employer is ___________ to reduce your wages because ______

On july 9, mifflin company receives a $8,500, 90-day, 8% note from customer payton summers as payment on account. what entry sho

olga55 [171]

Answer:

Dr Cash $8,670

Cr Interest Revenue $170

Cr Note Receivable $8,500

Explanation:

As we know that the interest given is for a year, so we should calculate the interest rate for a unit month, which is calculated as under:

Interest per month = 0.08/12 = 0.0067

Interest revenue = Note Value * Interest rate per month * Number of months

Interest revenue = $8,500 * 0.0067 * 3

Interest revenue = $170

The double entry would be as under:

Dr Cash $8,670 .... ($8,500 Note Value + $170 Interest Revenue)

Cr Interest Revenue $170

Cr Note Receivable $8,500

5 0

2 years ago

Read 2 more answers

Jose Peacher is an executive with a large manufacturing company. A former coworker of his recently started a company and raised

Diano4ka-milaya [45]

Answer:

You have to consider that angel investors invest money in exchange for equity, so it is a very cheap way of getting financed. There are two ways of evaluate what happened:

Jose's friend was probably irresponsible for accepting the money from the angel investor, although he will not pay any interests for it. The problem here is that Jose's friend might spend the extra money in frivolous activities or unnecessary expenses, e.g. rent a very fancy and expensive office. When you have a lot of extra money in your hands, it is very easy to spend it. OR
Another way of analyzing what happened is that Jose's friend may want to share the risk of the new entrepreneurship with someone else. Maybe he/she has enough money to invest, but he/she is not willing to take the risk of investing it all himself/herself. Getting financed by an angel investor is a way of reducing your personal risk. Remember that a sole proprietor is personally liable for all of the company's obligations, but that changes for a LLP, LLC or a corporation.

6 0

2 years ago

When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton,

Gekata [30.6K]

Answer:

customer excellence

Explanation:

The night clerk is not in charge of looking for dry cleaners, he is not Maria's personal assistant nor does he own or operate a dry cleaning service. So the fact that he did more than his job requires him to do, exemplifies how Ritz-Carlton's employees are committed to providing excellent customer service. That small extra effort can really make a difference.

6 0

2 years ago

Your portfolio is comprised of 36 percent of Stock X, 18 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.

VladimirAG [237]

Answer:

Portfolio´s beta: 1.16

Explanation:

Stock Percent Beta Weighted Beta

X 36% 1,19 0,43

Y 18% 0,87 0,16

Z 46% 1,26 0,58

1,16

The portfolio beta is obtained by the sum of the individual betas of each stock considering it´s percent on the portfolio (weighted beta).

It represents the relative volatility of a portfolio relative to the market. More than one means more volatile and less than one means less volatile than the market.

8 0

2 years ago

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0

3 years ago

When the economy enters a​ recession, your employer is​ ___________ to reduce your wages because​ _______.

When the economy enters a recession, your employer is _____ to reduce your wages because _.