Both of these leases should be classified as a capital lease. A capital lease is defined as a lease in which the person who is leasing the asset only finances the leased asset, all of the other rights of ownership are transferred to the person who is taking out the lease. This makes the lease a fixed asset because it is temporarily being used.
Answer:
The journal entry to record the sale transaction would be to "debit cash $295.50; debit credit card expense $4.50 and credit sales $300"
Explanation:
The credit card expense of $4.5 ( i.e, Sales of Merchandise <em>$300</em> multiplied by Bank service charge deduction <em>1.5%</em>) is a loss.
Therefore, It should be debited.
Answer:
Record of transaction is given below
Explanation:
given data
Selling price of goods = $900
Cost of goods sold = $590
solution
we get here Record of transaction in Rita Company that is
Inventory accounts Dr $900
Account payable Cr $900
and
Record of transaction in Linus Company is
Account receive able Dr $900
Sales revenue Cr $900
and
Cost of goods sold Dr $590
Inventory Cr $590
Daryl is the founder of a successful smartphone application. He is detail oriented and has high expectations of his employees. He rewards them with bonuses for a job well done but employees do not know him well. Daryl is a Transactional Leader.
Transactional Leader is a leader who rewards his employees for a job well done as well as punish them for a job bad done. There is a distance between the leader and the employees. Leader helps their employees in doing good work and also rewards them when they do good, but they have a formal distance and relationship with each other. He expects high from his employees. That is why he rewards them or punish them as well.
Answer: SEE EXPLANATION
Explanation:
Given the following ;
Values depending on Success
$150M, $135M, $95M, $80M
Risk free rate = 5% = 0.05
Pervebtage to be lost in case of bankruptcy = 25% = 0.25
A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million
Assume a zero-coupon debt with a $100million face value
B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million
C.) Yield to maturity (YTM)
(100M÷78.87M) - 1
1.2679 - 1 = 0.2679 = 26.79%
Expected return = 5%
D.) Equity value
0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million
E.) share if no debt is issued
109.52 ÷ 10 = 10.95 per share
F.) Share price if debt of $100M is issued
99.11 ÷ 10 = 9.91 per share
The price differs because bankruptcy cost will Lower the share price.
