Answer:
a. 20.00%
Explanation:
Monthly loan payment
= (685000*10%*8/12 + 685000)/8
= $91,333.33
PV = -685000
Nper = 8
Using RATE function
= RATE(8,91333.33,-685000,0)*12
= 20%
Therefore, The loan's annual percentage rate (APR) is 20%.
Answer:
A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation:
Debt contracts are formed when a borrower agrees to repay a lender. Convenants are usually used to settle disputes between the borrower and the lender. Convenants limits the the extent to which debtors take risks, dividend payouts, claim dilution, and other activities that can cause the lender to lose money.
Debt contracts are obtained by businesses to finance short term operations activities or long term expansion plans.
Answer: A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation: A debt contract is an agreement in which a borrower agrees to repay funds borrowed to a lender. Usually classes into a short-term and long-term debt contracts, they are used in raising money for working capital or capital expenditures and in return for lending the money, the individuals or institutions become creditors and receive a promise that the capital and interest on the debt will be repaid (usually in fixed amounts over a period of time) in accordance with the terms of the contract. Debt contracts include detailed provisions on collateral involved, interest rate, the schedule for interest payments, and the timeframe to maturity if applicable.
b. False
Answer:
a. True
Explanation:
The system of the bank contains the customers data i.e. name and the address by which they could be identified also their accounts are identified. Each and every account has the balance option also it involved two types of accounts i.e. saving that provides the rate of interest and the other one is for investment that used to purchase the stocks
Hence, the given statement is true
Answer:
Job 33 $ 27250
Job 34 $ 31500
Job 35 $ 12325
Cost of Goods Sold Job 33 $ 27250
Finished Goods Inventory Job 34 $ 31500
Work in Process Inventory Job 35 $ 12325
Explanation:
Work in Process Balance on 3/1
Job 33 $ 7,500
Job 34 6,000
Total $ 13,500
Job 33
Direct Materials $3500
Direct Labor 6500
Overheads (150%) 9750
Add Opening WIP 7500
Total Cost $ 27250
We add the Direct Material Direct Labor and Mfg overheads with the opening balance of WIP to get the total cost of given jobs.
Job 34
Direct Materials $6000
Direct Labor 7800
Overheads (150%) 11700
Add Opening WIP 6000
Total Cost $ 31500
Job 35
Direct Materials $4200
Direct Labor 3250
Overheads (150%) 4875
Add Opening WIP ------
Total Cost $ 12325
Cost of Goods Sold Job 33 (given) $ 27250
Finished Goods Inventory Job 34 (given) $ 31500
Work in Process Inventory Job 35(given)$ 12325
It is given in the question that Job 34 is transferred to Finished Goods , Job 35 is still in process and Job 33 is cost of goods sold.
By accounting for beginning balances, cost of materials, labor, and overheads, the costs of Jobs 33, 34, and 35 at end of the month are $27,250, $31,500 and $12,325 respectively. The Work in Process Inventory is $12,325, Finished Goods Inventory is $31,500 and Cost of Goods Sold is $27,250.
To calculate the cost of each job at Oak Creek Furniture Factory (OCFF), we first need to consider all cost factors. These include the beginning balances, additional materials requisitioned, labor hours, and overheads. Job overheads for OCFF are applied as 150 percent of direct labor cost.
Job 33: The initial cost was $7,500. During March, materials costing $3,500 and labor cost of $6,500 were added, making a total of $10,000. Applying the overhead calculation, we find that overheads amount to $6,500 * 1.5 = $9,750. The total cost for job 33 is therefore $7,500 (beginning balance) + $10,000 (material and labor costs) + $9,750 (overhead) = $27,250.
Job 34: Initial cost was $6,000. Material and labor costs for March amount to $6,000 and $7,800 respectively, summing up to $13,800. The overhead equals $7,800 * 1.5 = $11,700. The total cost for job 34 is accordingly $6,000 (beginning balance) + $13,800 (material and labor costs) + $11,700 (overhead) = $31,500.
In regard of Job 35, which is still in progress, only the cost of materials $4,200 and labor $3,250 have been added, totalling $7,450. Calculating overheads, we get $3,250 * 1.5 = $4,875. Therefore, the cost so far for job 35 is $7,450 (material and labor costs) + $4,875 (overhead) = $12,325.
For the balance of the Work in Process Inventory, we just include the cost of Job 35, which isn't finished yet: $12,325.
The Finished Goods Inventory includes the cost of Job 34 which is completed but not sold: $31,500.
Cost of Goods Sold consists of completed and sold jobs, in this case only Job 33: $27,250.
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b) false
1. JournalizetheJanuary1,2018,purchase.
2. Journalize the first monthly payment of $3,370 on January 31, 2018. (Round to the nearest dollar.)
Answer:
1)Jan 1
Dr Building $295,000
Dr Land $45,000
Cr Mortgages Payable 300,000
Cr Cash $40,000
2)
Jan. 31
Dr Mortgages Payable $1870
Dr Interest Expense $1,500
Cr Cash3,370
Explanation:
1) Journal entries
Jan. 1
Dr Building $295,000
Dr Land $45,000
Cr Mortgages Payable 300,000
($295,000+$45,000=$340,000-$40,000
=$300,000)
Cr Cash $40,000
Purchased building and land with mortgages payable and cash payment.
2)
Jan. 31
Dr Mortgages Payable ($3,370 − $1,500) $1870
Dr Interest Expense (300,000 × 0.06 × 1/12)$1,500
Cr Cash3,370
Paid principal and interest payment
Answer and Explanation:
Utility maximization rule is fundamentally the most extreme fulfillment got from utilization of an item.
Like picking between a modest or costly lodging while a costly inn would be high in quality however a tolerably charged inn would likewise offer fulfillment to the purchaser.
The decision relies upon the salary spending plan of the shopper and there are requirements to the purchaser as far as the decisions accessible relying upon costs and pay.