Answer:
Explanation:
1. April 1, 2018
Dr Notes Receivable 570,000
Cr Cash 570,000
2. Dec 31, 2018
Dr Interest Receivable 47,025
Cr Interest revenue 47,025
*Interest Revenue = Face value*Annual int. rate*Fraction of the year = 570,000*11%*9/12 = 47,025
3. April 1, 2019
Dr Cash 632,700
Cr Notes receivable 570,000
Cr Int receivable 47,025
Cr Int revenue 15,675
*Int revenue = 570,000*11%*3/12 = 15,675
Two taxi companies scenario does not describe a competitive market, this is because the companies are just two, for a market to be competitive it must have numerous companies offering identical products. The pharmaceutical company scenario is not an example of a competitive company because it is the only one involve in the market and the product been market is just one, a competitive market normally involve many companies. The college and algebra companies scenario describe competitive market because there are many companies that offer basically identical services and the clients can choose from any one of them. The companies have to put in extra work to win customers for themselves.
Answer:
$205,000
Explanation:
Total liabilities=current liabilities+long-term liabilities
total liabilities=$150,000+$220,000
total liabilities=$370,000
total owners'equity plus liabilities=$320,000+$370,000=$690,000
long-term assets+current assets=liabilities+owners'equity
long-term assets=$485,000
current assets are unknown
liabilities+owners'equity=$690,000
let CA represent current assets
$485,000+CA=$690,000
CA=$690,000-$485,000
CA=$205,000
Answer:
Abed must earn 13.5% or $108 annual interest to cover the monthly fee.
Explanation:
Abed should earn minimum $9 of interest on deposit each month to cover the bank charges expense.
Average Monthly Balance = $800
Bank Charges = $9.00 per month
Monthly interest rate = (Monthly bank charges / Monthly average balance ) x 100
Monthly interest rate = ( $9.00 / $800 ) x 100 = 0.01125 x 100 = 1.125%
Annual Interest rate = 0.01125 x 12 = 0.135 = 13.5%
Annual Interest = $800 x 13.5% = $108
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The down payment of $5,000 and financed the balance. According to the purchase agreement, you must pay $600/month for four years, beginning one month from today. The credit agreement is based on an annual interest rate of 12%.
First, we need to calculate the final value of the monthly payment.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 600
i= 0.12/12= 0.01
n= 12*4= 48
FV= {600*[(1.01^48)-1]}/0.01= 36,733.56
Now, we calculate the present value:
PV= FV/ (1+i)^n= 36,733.56/ (1.01^48)= 22,784
Total cost= 22,784 + 5,000= $27,784
