Answer: B) Deposit the money into Killian’s account, calculate his commission afterwards, then subtract that amount to determine the final sum owed to the principal, followed by issuing a check to the principal within 3 business days.
Explanation:
Killian has options for depositing the funds into the principal's account, an escrow account, or even into the broker's trust fund, depending on what is agreed upon with the seller; however, he cannot retain the funds for personal use. Killian is only entitled to earn his commission after the sale closes.
Advance commissions are not permissible, since various circumstances could prevent the successful execution of the deal, such as the home could be destroyed, the banking system collapsing, or the demise of either buyer or seller, among other unlikely events.
Response:
advertising expense 387 debit
prepaid expense 387 credit
--to document expired advertising at the year's end ---
Details:
1,548 represents the value over 36 months
From April to December 31, 9 months have elapsed thus:
1,548 x 9/36 = 387 expired advertising
We will reduce our prepaid account and record the advertising expense for the expired amount
The prepaid expense is classified as an asset since it grants us the right to receive advertising for our product and brand during the contract period. Therefore, we credit it to decrease it
while the expense will debit our equity
Response:
$540,000
Explanation:
Calculating the company's additional revenue from accepting the proposal
Utilizing this equation
Additional revenue = Number of units in export order * Price offered per unit
Now, let’s insert values into the equation
Additional revenue=9,000*$60
Additional revenue= $540,000
Hence, the company's additional revenue from accepting the offer totals $540,000
Response:
Initial investment of $700
Interest rate 9%
Duration 6 years
Annual interest: (700x0.09) =63
Total interest after the loan term: (63x6) = 378
Answer:
Strategic planning.
Explanation:
A strategic plan serves as a document outlining an organization's direction. It can vary in length from a single page to an entire binder depending on the business's scale and intricacy. Most managers often find value in having a strategic plan.
