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alina1380 [7]
3 years ago
7

The journal entry for an installment note payment includes all except:__________.

Business
1 answer:
soldi70 [24.7K]3 years ago
5 0

Answer: a. a credit to Accounts Payable.

Explanation:

When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.

Interest expense will be debited by the interest accumulated on the loan because expenses are debited when they increase.

Notes Payable will be debited to show that the note has now been retired.

There is no credit for Accounts payable involved in this transaction.

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Herman Co. is considering a four-year project that will require an initial investment of $7,000. The base-case cash flows for th
goldenfox [79]

Answer:

Net Present Value    $ 23,373.49

Explanation:

First, we solve for the expected return:

\left[\begin{array}{cccc}State&Return&Probability&Weight\\best-case&19,000&0.25&4,750\\base-case&12,000&0.5&6,000\\worst-case&-3,000&0.25&-750\\Total&&1&10,000\\\end{array}\right]

Now, we solve for the present value of this vaue over the four-year period:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 10,000.00

time 4

rate 0.12

10000 \times \frac{1-(1+0.12)^{-4} }{0.12} = PV\\

PV $30,373.4935

<u>Last we subtract the investment cosT:</u>

30,373.49 - 7,000 = 23,373.49

5 0
3 years ago
You wish to sell short 100 shares of XYZ corporation stock. If the last two transactions were at $34.10 followed by $34.15, you
yan [13]

Answer: b. 34.15 or higher

Explanation:

Short sales refer to the sale of borrowed stocks in anticipation that the stock price of the underlying stock will fall. This will then enable you to make a profit by buying the cheaper shares and giving it back to the entity you borrowed from thereby making a profit.

With short sales, the price is usually upward trending so will normally increase from the last price. As the last price here was $34.15, that would be the likely minimum for the next sale.

This means that the next sale will either be at a price of $34.15 or a price higher than that.

6 0
2 years ago
Suppose that Steve heads to the local hamburger shop with $3, expecting to spend $2 for his favorite burger and $1 for French fr
PtichkaEL [24]

Answer:

Income effect

Explanation:

The effect is because the customer purchasing power has been changed due to which he is now able to buy more to fulfill his needs and wants. The income effect occurs due to two reasons.

Number 1. The real income of the person has been increased which means his purchasing power has been increased. This means previously you were earning $2000 a month and now you are earning $10000 a month. Now you can buy New Iphone every month because your real income has been increased and this has increased your purchasing power.

Number 2. The price of the product has been fallen and now it is in range of the purchasing power of the customer. This means that if Iphones 11 are available at $100 then everybody buy Iphone 11. This is because the product is in the range of purchasing power of greater number of customers.

5 0
3 years ago
Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of
EastWind [94]

Answer:

d. both countries, as whole, will be better off.

Explanation:

When countries leverage on their comparative advantages, they will be better off. In this instance as US has comparative advantage in producing airplanes, it will be more cost effective for them to produce and export to Japan.

So also Japan will find it cheaper to produce televisions and export to the US. Both contries reduce cost by producing goods they have comparative advantage in.

6 0
2 years ago
When you visit the executive assistant to request important changes to a spreadsheet, he is hard at work, e-mailing clients. The
valkas [14]

Answer:

he values your time

Explanation:

In this specific scenario, the executive assistant is expressing nonverbally that he values your time. This is expressed by him stopping what he was doing in order to pay attention to what you have to say to him when you enter the room. Since the work that he is doing (e-mailing clients) is incredibly important, the simple act of him stopping shows that your time is more important to him.

6 0
3 years ago
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