The stockholders’ equity accounts of Ayayai Corporation on January 1, 2020, were as follows. Preferred Stock (8%, $48 par, 10,000 shares authorized) $ 408,000
Common Stock ($1 stated value, 2,100,000 shares authorized) 1,200,000
Paid-in Capital in Excess of Par—Preferred Stock 150,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,500,000
Retained Earnings 1,850,000
Treasury Stock (10,500 common shares) 52,500

During 2020, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Feb.1 Issued 25,000 shares of common stock for $117,000.
Apr.14 Sold 6,000 shares of treasury stock—common for $33,400.
Sept.3 Issued 4,800 shares of common stock for a patent valued at $35,800.
Nov.10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,700.
Dec.31 Determined that net income for the year was $480,000.

No dividends were declared during the year.
(a)

Journalize the transactions and the closing entry for net income. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

ed

explanation:

dew

answerprotecting competitors;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.