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Talja [164]
3 years ago
8

On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $2,000 and a $3,000 note, payable in one year

. Interest of 6.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. [Note: Record the complete March 1 entry for the equipment purchase first, the complete March 31 depreciation adjusting entry second, and the complete March 31 interest adjusting entry third.]
Business
1 answer:
Alinara [238K]3 years ago
5 0

Answer:

March 1: Entry for the equipment purchase                            

Cash                                  -$2,000

Fixtures and equipment    $5,000

Notes payable                    $3,000

March 31: Depreciation adjusting entry

                                            Debit        Credit

Fixtures and equipment    -$42

(5000/10/12)

Retained earnings                               -$42

March 31: Interest adjusting entry

                                            Debit        Credit

Interest payable                 $16.25

(3000*6.5%/12)

Retained earnings                              -$16.25

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1. Please find it attached.

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If they both get a lawyer they will each get half which is $2,500,000 but they would both have paid their lawyers $200,000 a piece so the net payout would be $2,300,000.

2. The Nash Equilibrium is the alternative that it would not serve either party to deviate from as it serves them both well. The Nash Equilibriums would be If both don't get a lawyer or if both get a lawyer.

3. Yes they would because without lawyers they would make more money as they would not have to pay the $200,000 in fees.

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Most businesses want to make profits, therefore certain measures are usually taken to achieve this objective. One such measure used is called internal control systems.

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