Being smart and being decisive.
Answer:
<em>Guaranty </em>
Explanation:
A Guaranty Agreement is <em>a document outlining your part in the process. </em>
This acknowledges a borrower's duty to a creditor;
the borrower promises to provide some value to the lender in the primary agreement, such as money or goods and services.
Revenue Recognition Principle
An accounting principle that states that a company should record revenues when they provide goods and services to customers.
Solution:
1 : The interest rate that fits the lifetime cash flows to the PV of cash flows is expected here.
PV of an equation of perpetuity:
PV = C/ r
$326,000 = $3,000 / r
With the interest rate, we could now solve the following:
r= $3,000 / $326,000
r= 0.0092 or 0.92% per month
2 :The interest rate per month is 0.92 percent.
In order to calculate the APR, the number of months in a year is determined by:
APR = (12) 0.92%
APR = 11.04%
3 : And using the equation to find the EAR, we find:
EAR = [1 + (APR / m)]m– 1
EAR = [1 + 0.0092]12– 1
EAR = 0.1162 or 11.62%
Answer:
cash 1,500 debit
accumulated depreciation- VAN 18,000 debit
loss at disposal 500 debit
VAN 20,000 credit
Explanation:
The journal entry must remove the van and their associate account from the company's books.
Therefore, will write-off van account and the accumulated depreciation.
Patel is receiving cash by the amount of 1,500 dollars. It will post the receipts as a debit to this account.
The difference will be considered gain/loss at disposal.
In this case, as the amount received 1,500
is lower than book value: 20,000 - 18,000 = 2,000
it will be a loss at disposal
