Answer:
Explanation:
Trung thực: Tính trung thực trong đạo đức kinh doanh thể hiện ở chỗ không buôn bán, sản xuất những mặt hàng nhà nước cấm, không dùng các chiêu trò dối trá để đạt được lợi ích của mình, không trốn thuế, làm ăn phi pháp; không tham ô, hối lộ; trung thành chấp hành đúng quy định của pháp luật…
Tôn trọng con người: Tôn trọng con người bao gồm tôn trọng nhân viên, đối tác khách hàng, đối thủ cũng như tất cả những người làm việc cùng với mình
Đạo đức kinh doanh gắn liền lợi ích của công ty doanh nghiệp với lợi ích chung của khách hàng và trách nhiệm đối với xã hội
On September 1, 2018, Drill Far Company purchased a tract of land for $2,300,000. The land is estimated to have a salvage value or $50,000, a useful life of four years, and contain an estimated 4,234,000 tons of iron ore. The company also purchased equipment to use in the extraction process that cost $220,450. The company plans to abandon the equipment when the ore is completely mined. During 2018, the company extracted and sold 1.25 million tons of ore. What is the depletion expense recorded for 2018
Answer:
$562,500
Explanation:
Depletion expenses = Land expenses
Depletion expenses = [$2,300,000 - $50,000 / 4]
Depletion expenses = $2,250,000 / 4
Depletion expenses = $562500
So, the depletion expense recorded for 2018 is $562,500
Marble Books, Inc., is expected to pay an annual dividend of $1.80 per share next year. The required return is 16 percent and the growth rate is 4 percent. What is the expected value of this stock five years from now
Answer:
$18.25
Explanation:
Calculation to determine the expected value of this stock five years from now
Expected value= 2.19/(0.16-0.04)
Expected value= 2.19/0.12
Expected value =$18.25
Therefore the expected value of this stock five years from now is $18.25
A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adjusting entry for this company by completing the following sentence. The required adjusting entry would be to debit the Interest __________________ account and ___________________ the Interest ___________________ account.
Answer:
The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account.
Explanation:
The number of days that a loan debt stays unpaid is referred to as the outstanding number of days.
In line with the general accounting rules, all expenses must be debited. Therefore, the interest expense has to be debited.
Interest payable, however, is the amount owed to a lender by a firm and is thus credited as the matching journal entry to the interest expense.
Therefore, we have:
The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account.
U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year
Answer:
$5.5228 million
Or
$5,522,800
Explanation:
First, calculate the present value of all cash outflows
Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )
Where
Initial cost = $13 million
Year 1 cost = $10 million
Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696
Annual Cost = $1.2 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )
Present value of cash outflow = $13 million + $8.696 million + $6.0228 million
Present value of cash outflow = $27.7188 million
Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year
Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years
Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years
Where
Present value of Annual revenue = $27.7188 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Annual Revenue = $27.7188 million / 5.019
Annual Revenue = $5.5228 million
Annual Revenue = $5,522,800
Alieia Boat Company manufactures 10 luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $38,000 per month. If it outsources the security system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?
a) any cost lower than $2500 per unit
b) any cost lower than $2200 per unit
c) any cost lower than $300 per unit
d) any cost lower than $3800 per unit
Answer:
a) any cost lower than $2500 per unit
Explanation:
total avoidable costs = ($300 * 10) + ($38,000 / 2) + $3,000 = $25,000
total number of navigation systems prodcued per month = 10
avoidable cost per navigation system = $25,000 / 10 = $2,500
this means that th e comapny could pay up to $2,500 per navigtion system provided by an extrenal supplier
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095. Joyce has used the high-low method to determine that her monthly cost equation is: total monthly cost = $215 + $0.20 per mile driven.
1. Determine how many miles Joyce needs to drive to break even.
2. Calculate Joyce's degree of operating leverage if she drives 4, 200 miles.
3. Suppose Joyce took a week off and her sales for the month decreased by 25 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month.
Answer and Explanation:
The computation is given below:
1.
Given that
Charges per mile = $0.50
Variable Cost per mile driven = $0.20
Fixed Cost = $215
So,
Contribution Margin per mile = Charges per mile - Variable Cost per mile driven
$0.50 - $0.20
= $0.30
Break-even units (in miles) = Fixed Cost ÷ Contribution Margin per mile
= $215 ÷ $0.30
= 717 miles
2.
Revenue for 4,200 miles is
= $0.50 × 4,200
= $2,100
And,
Variable Cost = $0.20 × 4,200
= $840
Now
Contribution Margin = Revenue - Variable Cost
= $2,100 - $840
= $1,260
And,
Fixed Cost = $215
So,
Net Income = Revenue - Variable Cost - Fixed Cost
= $2,100 - $840 - $215
= $1,045
So,
Degree of Operating Leverage = Contribution Margin ÷ Net Income
= $1,260 ÷ $1,045
= 1.2057
3.
Degree of Operating Leverage = % Change in Net Income ÷ % Change in Sales
1.2057 = % Change in Net Income ÷ -25%
1.2057 = % Change in Net Income ÷ -0.25
% Change in Net Income = -0.301425
= -30.1425%
Which of the following is an example of a mixed cost?
a. electricity costs of $3 per kilowatt-hour
b. salary of a factory supervisor
c. rental costs of $10,000 per month plus $0.30 per machine hour of use
d. straight-line depreciation on factory equipment
Answer:
C
Explanation:
Mixed cost is a cost that consists of both fixed cost and variable cost
Fixed costs are costs that do not vary with output. e.g., rent, mortgage payments, depreciation
Variable costs are costs that vary with production
An example of variable cost is electricity costs of $3 per kilowatt-hour. If the factory is locked down, no electricity cost would be incurred.
The rental costs of $10,000 per month plus $0.30 per machine hour of use consists of both a fixed cost and a variable cost
the fixed cost is 10,000
the variable cost is $0.30 per machine hour
a. Sunland Cosmetics acquired 12% of the 287,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2019. On June 30, Elite declared and paid a $80,200 dividend. On December 31, Elite reported net income of $228,100 for the year. At December 31, the market price of Elite Fashion was $16 per share.
b. Culver Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 29,100 outstanding shares of common stock at a total cost of $11 per share on January 1, 2020. On June 15, Kasey declared and paid a cash dividend of $38.500. On December 31, Kasey reported a net income of $122.900 for the year.
Required:
Prepare all the necessary journal entries for 2020 for Culver Inc.
Answer:
Mar 18
Dr Available for sales Securities $4,025,000
Cr Cash $4,025,000
June 30
Dr Cash $9624
Cr Dividend Revenue $9624
Dec-31
Dr Securities Fair value Adjustment $575,000
Cr Unrealised gain or Losss- income$575,000
B. Jan 1
Dr Investment in Culver stock $80,025
Cr Cash $80,025
Jan 15
Dr Cash $9,625
Cr Investment in Culver stock $9,625
Dec, 31
Dr Investment in Culver stock $30,725
Cr Revenue $30,725
Explanation:
Preparation of all the necessary journal entries for 2020 for Culver Inc.
Mar 18
Dr Available for sales Securities $4,025,000
(287,500*$14)
Cr Cash $4,025,000
June 30
Dr Cash $9624
Cr Dividend Revenue $9624
($80,200*12%)
Dec-31
Dr Securities Fair value Adjustment $575,000
Cr Unrealised gain or Losss- income$575,000
[(287,500*($16-$14)]
B. Jan 1
Dr Investment in Culver stock $80,025
(29,100*25%*$11)
Cr Cash $80,025
Jan 15
Dr Cash $9,625
($38,500*25%)
Cr Investment in Culver stock $9,625
Dec, 31
Dr Investment in Culver stock $30,725
($122,900*25%)
Cr Revenue $30,725
Total Cost Logistics Model takes into consideration ______. A. all of the transportation cost B. all of the handling cost C. all of fixed assets D. all of the inventory carrying cost
Answer:
Total Cost Logistics Model takes into consideration:
A. all of the transportation cost
B. all of the handling cost
D. all of the inventory carrying cost
Explanation:
The total cost logistics model includes all the logistics factors (transportation costs, inventory carrying costs, and administration costs). Logistics can be divided into procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics.
PET Co. owns 80% of the common shares of SAL Corp. PET has no other investments. Goodwill associated with the investment is nil, but there is a fair value increment of $62,500 relating to SAL's patent that is being amortized over 10 years. PET's and SAL's reported net income for 20X5 is as follows: PET Co. SAL Corp. Net income $200,000 $50,000 SAL declared $25,000 in dividends in 20X5. Assuming PET uses the cost method, what amount of consolidated net income attributable to the parent (ATP) would be reported in 20X5?
a) $210,000
b) $215,000
c) $223,750
d) $235,000
Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:
Answer:
price-taking assumption.
free entry assumption.
Explanation:
A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:
- products are nearly identical
- all the firms are price takers. That is they are not able to determine price independently
- buyer knowledge of information about products is perfect and available to all
- free entry and exit to the market
- resources are perfectly mobile
In the given scenario above two of these rules are not obeyed.
Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.
So they determine the price ( they are not price takers)
Also since they own nearly all the aluminium reserves there is no free entry for new firms
ABC Company uses the allowance method for estimating bad debts. Record the following journal entries:
12/31 ABC Company estimates that $5,000 of accounts receivable will be uncollectible.
3/5 ABC Company wrote off a $1,200 account of a customer, B. Brown.
Answer:
Date Account titles and Explanations Debit Credit
31 Dec Bad debts expense $5,000
Allowance for uncollectible accounts $5,000
(To record bad debts expense recorded)
5 Mar Allowance for uncollectible accounts $1,200
Accounts receivable $1,200
(To record account written off)
Recently, Shandra purchased 5 movie DVDs and 12 three ring binders. What if the price of DVDs rose by $3 and the price of three ring binders declined by $2. With Shandra’s income unchanged and prices for other goods remaining the same, what actions would Shandra most likely take?
Answer:
1. She'll purchase less quantity of movie DVDs
2. She'll purchase more quantity of three-ring binders
Explanation:
INITIAL CASE:
Purchase: 5 DVDs and 12 Binders
Price of DVDs = x Price of Binders = y
NEW CASE:
Price of DVDs = $(x + 3) Price of Binders = $(y - 2)
Shandra's income is unchanged - it doesn't increase or fall in this period.
Prices of "other goods" is also constant - hence the decisions Shandra will make concerning quantity to purchase of DVDs & Binders, will solely be based on the new prices of the two items/commodities.
This clears the "ceteris paribus" assumption of the law of demand! All other things - income & prices of other goods - are already determined to be equal or constant.
In this case, the consumer, Shandra will purchase more of the good whose price has fallen and less of the good whose price has risen. Hence, the actions that Shandra would take are:
1. She'll purchase less quantity of movie DVDs
2. She'll purchase more quantity of three-ring binders
Goldfarb Company manufactures and sells toasters. Each toaster sells for $22.95 and the variable cost per unit is $15.85. Goldfarb's total fixed costs are $24,200, and budgeted sales are 7,200 units. What is the contribution margin per unit
Answer: $7.10
Explanation:
The Contribution margin of a good refers to the amount left of the sales after the variable costs have been removed from it. It is useful in calculating the breakeven point as it can divide the fixed costs to find out the number of units needed to breakeven.
It is therefore calculated as:
= Sales - Variable cost
= 22.95 - 15.85
= $7.10
The following data relate to product no. 33 of La Quinta Corporation: Direct labor standard: 5 hours at $14 per hour Direct labor used in production: 45,000 hours at a cost of $639,000 Manufacturing activity: 8,900 units completed The direct-labor rate/price variance is:
Answer:
$9,000 (Unfavorable)
Explanation:
The computation of the direct-labor rate/price variance is given below:
Given that
Actual time used = 45,000 hours
Actual cost of labor used = $639,000
Now
Actual rate = Actual cost of labor used ÷ Actual time used
= $639,000 ÷ 45,000
= $14.2 per hour
And,
Standard rate = $14 per hour
Standard time = 5 hours per unit
Actual output = 8,900 units
So, standard time for actual output = 8,900 × 5
= 44,500
Now
Direct labor rate variance = Actual time × (Standard rate - Actual rate)
= 45,000 × (14 - 14.2)
= $9,000 (Unfavorable)
trình bày ưu nhược điểm của các loại hình doanh nghiệp
Answer:
Explanation:
Doanh nghiệp tư nhân;
Công ty hợp danh;
Công ty TNHH 1 thành viên;
Công ty TNHH 2 thành viên;
Công ty cổ phần;
Explain one situation when you will use these two pricing strategies penetration pricing and skimming prices
Answer:
An electronic news portal that offers one complimentary month for something like a free trial service or an institution that offers a free bank account for 6 months are both instances of penetration pricing.
A pricing technique known as price skimming is establishing a premium charge when other rivals enter the market. For instance, the Playstation 3 was initially priced at $599 in the United States, but has now been lowered to around $200.
Nichols Company uses the percentage of receivables method for recording bad debts expense. The month-end accounts receivable balance is $250,000 and credit sales during the month were $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment. The adjusting entry that Nichols must make includes: a. a credit to the allowance for $7,500. b. a credit to the allowance for $30,000. c. a debit to bad debt expense for $10,000. d. a debit to bad debt expense for $40,000.
Answer: a. a credit to the allowance for $7,500
Explanation:
Estimated Bad Debt = Balance on Account receivable x bad Debt loss rate = $250,000 x 4% = $10,000
Allowance for doubtful accounts with a credit balance of $2,500
Allowance for Bad debts expense =Estimated Bad Debt - Credit balance Allowance for doubtful accounts = $10,000 - $2,500 = $7,500
Account titles and explanation Debit Credit
Bad Debt Expense $7,500
Allowance for Doubtful Accounts $7,500
A company had net income of $43,000, net sales of $380,500, and average total assets of $220,000. Its profit margin and total asset turnover were, respectively:
a. 11.3%; 1.73
b. 11.3%; 19.5
c. 1.7%; 19.5
d. 1.7%; 11.3
d. 19.5%; 11.3
Answer:
11.3%, 1.73
Explanation:
Net income= 43,000
Net sales= 380,500
Total assests= 220,000
Therefore profit margin can be calculated as follows=
Net income/sales
= 43000/380,500
= 0.113×100
= 11.3%
Total assets turnover can be calculated as follows
= 380,500/220,000
= 1.73
the Hence profit margin is 11.3% and total assets turnover is 1.73
Pettygrove Company had 800,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $4,000,000, and Retained Earnings is $1,200,000. The company issues a 2-for-1 stock split. The market price of the stock is $14. What is the balance in the Common Stock account after this issuance
Answer:
$8,000,000
Explanation:
Balance in the Common Stock account = Number of hare after split * Par value of share
Balance in the Common Stock account = 800,000 * 2 * $10/2
Balance in the Common Stock account = $8,000,000
So, the balance in the Common Stock account after share split will be $8,000,000.
Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:
a. perform a Monte Carlo analysis
b. understand trigger conditions, or circumstances under which a risk strategy or risk action will be invoked
c. conduct a root cause analysis
d. develop a flow chart that shows how people, materials or data flow from one person or location to another
Answer:
Interviews. Select key stakeholders. ...
Brainstorming. I will not go through the rules of brainstorming here. ...
Checklists. See if your company has a list of the most common risks. ...
Assumption Analysis. ...
Cause and Effect Diagrams. ...
Nominal Group Technique (NGT). ...
Affinity Diagram.
Explanation:
Create a risk register. Create a risk register for your project in a spreadsheet. ...
Identify risks. ...
Identify opportunities. ...
Determine likelihood and impact. ...
Determine the response. ...
Estimation. ...
Assign owners. ...
Regularly review risks.
Atlanta Company, had an ROA of 6.5 percent, a profit margin of 11.50 percent, and sales $20 million. Calculate Atlanta's total assets. Show your calculation
Answer:
The right solution is "35.39".
Explanation:
Given:
Profit margin,
= 11.50%
or,
= 0.115
ROA,
= 6.5%
or,
= 0.065
Sales,
= $20 million
As we know,
⇒ [tex]Profit \ margin = \frac{Net \ income}{Sales}[/tex]
or,
⇒ [tex]Net \ income = Sales\times Profit \ margin[/tex]
[tex]=20\times 0.115[/tex]
[tex]=2.3[/tex]
hence,
The total asset will be:
⇒ [tex]ROA = \frac{Net \ income}{Total \ assets}[/tex]
or,
⇒ [tex]Total \ assets = \frac{Net \ income}{ROA}[/tex]
[tex]=\frac{2.3}{0.065}[/tex]
[tex]=35.39[/tex]
Ayayai Corporation reported net cash provided by operating activities of $345,000, net cash used by investing activities of $145,000, and net cash provided by financing activities of $75,000. In addition, cash spent for capital assets during the period was $200,000. No dividends were paid. Calculate free cash flow.
Answer:
the free cash flow is $145,000
Explanation:
The computation of the free cash flow is given below:
The free cash flow is
= cash flow from operating activities - capital expenditures
= $345,000 - $200,000
= $145,000
hence, the free cash flow is $145,000
The same should be considered and relevant
On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $43,495,895. The company uses the interest method.
a. Journalize the entries to record the following:
1. sale of the bonds.
2. First semiannual interest payment, including amortization of discount.
3. Second semiannual interest payment, including a of discount.
b. Compute the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $43,495, 895 rather than for the face amount of $50,000,000.
Answer:
Ebert Company
Journal Entries:
1) Debit Cash $43,495,895
Debit Bonds Discounts $6,504,105
Credit Bonds Payable $50,000,000
To record the sale of the bonds at a discount.
2) First semiannual interest payment:
Debit Interest Expense $1,957,315
Credit Amortization $207,315
Credit Cash $1,750,000
To record the first semiannual interest payment.
3) Second semiannual interest payment:
Debit Interest Expense $1,966,644
Credit Amortization $216,644
Credit Cash $1,750,000
To record the second semiannual interest payment.
b. Bond interest for the first year = $3,923,959 ($1,957,315 + $1,966,644)
c. The company issued the bonds at a discount at a coupon rate of 7%, which is less than the market interest rate of the bonds (9%).
Explanation:
a) Data and Calculations:
Face value of bonds = $50,000,000
Price received = $43,495,895
Discount = $6,504,105
Coupon interest rate = 7%
Interest payment = semiannually
Maturity period = 10 years
Market (effective) interest rate = 9%
1) Cash $43,495,895 Bonds Discounts $6,504,105 Bonds Payable $50,000,000
2) First semiannual interest payment:
Interest Expense $1,957,315 Amortization $207,315 Cash $1,750,000
Cash payment = $1,750,000 ($50,000,000 * 3.5%)
Interest expense = 1,957,315 ($43,495,895 * 4.5%)
Amortization = $207,315
Fair value of bonds = $43,703,210 ($43,495,895 + $207,315)
3) Second semiannual interest payment:
Interest Expense $1,966,644 Amortization $216,644 Cash $1,750,000
Cash payment = $1,750,000 ($50,000,000 * 3.5%)
Interest expense = 1,966,644 ($43,703,210 * 4.5%)
Amortization = $216,644
On January 1, 2019, Stronger Industries issued $480,000 of 9%, five-year bonds that pay interest semiannually on June 30 and December 31. They are issued at $499,483 and their market rate is 8% at the issue date. After recording the entry for the issuance of the bonds, Bonds Payable had a balance of $480,000 and Premium on Bonds Payable had a balance of $19,483. Stroger uses the effective interest bond amortization method. The first semiannual interest payment was made on June 30, 2019. Complete the necessary journal entry for the interest payment date of June 30, 2019 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Journal Entry to record the first interest payment
June 30, 2019
Dr. Interst Expense $19,979.32
Dr. Premium on Bond $1,620.68
Cr. Cash $21,600
Explanation:
First, we need to calculate the premium on bond amortization as follow
Premium on bond amortization = Coupon Payment - Interest Expense
Premium on bond amortization = ( $480,000 x 8% x 6/12 ) - ( $499,483 x 8% x 6/12 )
Premium on bond amortization = $21,600 - $19,979.32
Premium on bond amortization = $1,620.68
g A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that are sold
Answer:
$188
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the cost of sales will be valued using the prices of earlier or older units.
Cost of Sales = 16 units x $24 + 6 units x $26
= $188
Thus, the cost of the 22 units that are sold is $188.
what are the first steps to start business
Answer:
finding a market for your product then finding a marketing strategy then get your assets set up
Explanation:
In 2012, Wingen Inc. sold 325,000 units at $8 each .Sales volume is expected to increase by 15 percent in 2013 while the price of each unit is expected to decrease by 15 percent. the expected sales revenue for 2013 is a. $373,750 b.$2,541,500 c.$1,878,500 d.$2,990,000
Answer:
$2541500
Explanation:
Given :
2012 :
Units sold = 325,000
Price per unit = $8
2013 :
Projected increase in volume = 15%
Projected decrease in price = 15%
Expected revenue = sales price * volume sold
Volume in 2013:
Projected Unit sold in 2013 = (1 + 0.15) * 325000 = 373750
units
Projected Price in 2013 = (1 - 0.15) * Price in 2012 = (1 - 0.15) * $8 = $6.80
Expected revenue = $6.80 * 373750 = $2541500
Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. The parties belief about the adjacency of the property is:
Answer:
A bilateral mistake
Explanation:
The mistakes of fact
This simply occurs in two forms. They are:
1. bilateral
2. Unilateral
Unilateral mistake of fact
This is simply said to happen if and only when one party is mistaken. This form of mistake of fact makes contract voidable.
Bilateral Mistake of facts
This form of mistake usually involves both parties. It is simply called a mutual mistake. This is also defined as mutual omissions or misunderstanding on simple assumption on which the contract was made.
Entries for Notes Payable A business issued a 60-day, 10% note for $96,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar.
Answer:
Business A
Journal Entries:
Debit Accounts Payable $96,000
Credit 10% Notes Payable $96,000
To record the issuance of a 60-day, 10% note to a creditor on account.
Debit 10% Notes Payable $96,000
Debit Interest Expense $1,600
Credit Cash $97,600
To record the payment of the note at maturing, including interest.
Explanation:
a) Data and Analysis:
Accounts Payable $96,000
10% Notes Payable $96,000
10% Notes Payable $96,000
Interest Expense $1,600
Cash $97,600
