The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years. Introduction: Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Question

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Answer 1

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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In the books of Billings Computers Ltd., a journal entry is recorded to debit the bank loan account for $10,000 and to credit the cash account for $10,000. What is the most likely transaction underlying this journal entry? * O The bank paid Billings $10,000 for computer equipment. O Billings paid the bank $10,000 interest on its bank loan. Billings borrowed $10,000 from the bank. Billings repaid a $10,000 bank loan. Billings paid the owners of the business $10,000

Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $31,000 and has cash on hand of $18,000 contributed by Lanni’s owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Choose one option for following blank: A. real asset. B. financial asset. C. real liability. D. Finanical liability. The bank loan is a Financial liability for Lanni, and a Financial asset for the bank. The cash Lanni receives is a Financial asset . 1. The new financial asset destroyed or created is Lanni's promissory note to repay the loan. Lanni uses the cash from the bank plus $18,000 of its own funds to finance the development of new financial planning software. Lanni transfers financial asset (cash) to the software developers. In return, Lanni receives the completed software package, which is a real asset. Lanni exchanges the real asset (the software) for a Financial asset, which is 1,400 shares of…

Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction?

Answer 2

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 3

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 4

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 5

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 6

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 7

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 8

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 9

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 10

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 11

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 12

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 13

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 14

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Answer 16

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Answer 17

Ch. 1 - Prob. 1PS Ch. 1 - Prob. 2PS Ch. 1 - Prob. 3PS Ch. 1 - Prob. 4PS Ch. 1 - Prob. 5PS Ch. 1 - Prob. 6PS Ch. 1 - Prob. 7PS Ch. 1 - Prob. 8PS Ch. 1 - Prob. 9PS Ch. 1 - Prob. 10PS

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