On January 1, 2018, Gadsby Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance. Gadsby will make yearly payments of $46,072. The amortization schedule for the first five payments is provided.
Prepare the journal entries for the purchase of the equipment and for the January 1, 2019 mortgage payment. Omit explanations.
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L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are, $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is six percent per annum. L & M's loan is usurious
a. True b. False Indicate whether the statement is true or false
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as
A. reference pricing. B. price lining. C. customary pricing. D. odd-number pricing. E. ethical pricing.
______ is the simplest approach to solving learning curve problems.
A. The arithmetic approach B. Using a table of learning curve coefficient values C. The logarithmic formula approach D. The quadratic formula approach
Which of the following observations concerning claims by general unsecured creditors is NOT true?
A. The amounts to be paid to them are usually stated as a percentage of the total claim. B. They often receive less than the full amount of their claim. C. They are entitled to "preference payments" at the discretion of the debtor's management. D. They are paid only after secured creditors and unsecured creditors with priority are satisfied to the extent of any legal limits.