Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
(Negative Amortization) Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low down payment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers.
On January 1, 2014, a customer purchased a new $33,000 automobile, making a down payment of $1,000. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Good-Deal required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2015. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2017.
Instructions(a) Prepare a note amortization schedule for the first year.(b) Indicate the amount the customer owes on the contract at the end of the first year.(c) Compute the amount of the new quarterly payments.(d) Prepare a note amortization schedule for these new payments for the next 2 years.(e) What do you think of the new sales promotion used by Good-Deal?
What accounts for the difference between these two amounts? Explain.
What is the difference between external and internal pricing? What factors must be considered when setting internal transfer pricing between company divisions? What are the different methods of setting internal transfer pricing? Which is the most ..
An employee's net pay consists of gross pay less mandatory and voluntary payroll deductions. Identify the mandatory payroll deductions and give two or three examples of common voluntary deductions. Are these deductions recognized as payroll expenses ..
Does this situation represent a loss contingency? Why or why not? How should Cupola account for it?
Why should share prices have a greater reaction to the profit announcements released by small firms compared with those released by large firms? Do you think this research has any implication for 'measurement' issues in accounting or for the f..
The third generally accepted standard of audit fieldwork requires that auditors obtain sufficient, competent audit evidence to afford a reasonable basis for an opinion regarding the financial statements under examination.
Identify three medical liability classes and provide a specific example for each class. Explain how the individual or entity behaved or acted in a way that may result in legal action.
a highway department is considering building a temporary bridgeto cut travel time during the three years it will take
p20-8 comprehensive 2-year worksheet glesen company sponsors a defined benefit pension plan for its employees. the
materials used by the industrial division of lemaster manufacturing are currently purchased from outside suppliers at a
during 2011 the corporation had the following transactions and events pertaining to its stockholders equity. feb. 1
If Alice decides to buy the investment, she would receive the first $250 payment one year from today. How much should Alice be willing to pay for this investment?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd