Question

In: Accounting

Don Manuel García Ferrer is self-employed and is dedicated to installing air conditioners. His friend, Mr....

Don Manuel García Ferrer is self-employed and is dedicated to installing air conditioners. His friend, Mr. Antonio López Hernández, has decided to set up a Business Accounting and Taxation business. For this he needs to make an initial investment of € 40,000. As his friend Manuel is doing very well, he has chosen to borrow from him instead of going to a bank. Don Manuel will give Don Antonio the amount of € 40,000 by bank transfer on September 15, 2016. They have agreed that Don Antonio will return the amount in four annual payments. The payment of each annual fee will be made at the end of each year with an annual interest of 4%. To document the payments, four bills of exchange corresponding to each annuity will be issued. To make sure of the collection of the amounts, Don Manuel has requested that the payment of the letters be guaranteed by the father of his friend, Mr. Luis López Pérez.

Don Manuel has decided to buy a new second-hand vehicle. To pay for this acquisition, he endorses the first letter to Doña Alicia Martínez Castro on October 01, 2016.

DEVELOP

  1. Draft the Commercial Loan Agreement detailing the form of payment and including all data that is not provided and it is necessary.

Solutions

Expert Solution

Loan Agreement

The loan agreement is made as of the 15th day of September 2016 by and between Don Manuel Garcia Ferrer and Don Antonio Lopez Hernandez with principal place of business

                             At _________ and ____________

Therefore , the parties hereto hereby agree as follows:

1. The Loan – The parties agree to loan for the amount € 40,000

2. Advances and Prepayment – The payment of each annual fee will be made at the end of each year with an annual interest of 4%.

3. Representation – To make sure of the collection of the amounts, Don Manuel has requested that the payment of the letters be guaranteed by the father of his friend ,Mr. Luis Lopez Perez.

4.Default & remedies – The Occurrence of any or more of the Additional Events of Default Luis Lopez Perez will be liable for the same.

In Witness of which the parties have signed this agreement:

Borrower signature _______

Lender signature __________

Witness signature_________

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Don Manuel García Ferrer is self-employed and is dedicated to installing air conditioners. His friend, Mr....
Don Manuel García Ferrer is self-employed and is dedicated to installing air conditioners. His friend, Mr. Antonio López Hernández, has decided to set up a Business Accounting and Taxation business. For this he needs to make an initial investment of € 40,000. As his friend Manuel is doing very well, he has chosen to borrow from him instead of going to a bank. Don Manuel will give Don Antonio the amount of € 40,000 by bank transfer on September 15,...
Phil is a self employed plumber and his wife, Lauren, is a full-time employee for the...
Phil is a self employed plumber and his wife, Lauren, is a full-time employee for the University. Lauren has health insurance from a qualified plan provided by the University, but Phil has chosen to purchase his own health insurance rather than participate in Lauren's plan. Besides paying $5,400 for his health insurance premiums, Phil also pays the following expenses associated with his plumbing business: Plumbing tools and supplies $1,300 Rent on Phil's plumbing shop 6,250 Transportation between Phil's shop and...
Terrell, a self-employed architect who reported a net profit on his Schedule C, paid for his...
Terrell, a self-employed architect who reported a net profit on his Schedule C, paid for his health insurance out of his own pocket. He was not eligible to be covered under any other insurance plan until November 1, when he became eligible for, but opted out of, his spouse's employer-sponsored plan. His total premiums paid for the year were $4,600. How much can Terrell deduct as an adjustment to income on his tax return? $767   $2,300   $3,833   $4,600  
Mr. Caldeira is employed by a large public corporation and for 2019 his salary was $_116,000_....
Mr. Caldeira is employed by a large public corporation and for 2019 his salary was $_116,000_. He was a member of the company’s pension plan and his contributions were matched by his employer. He contributed $800.84 to the plan and the amount shown on his T4 slip along with an entry of $1,601.68 in box 52 representing his pension adjustment. Union dues were deducted of $750. During 2019, his employer withheld the following amounts from his compensation:        EI Premiums                                                                               ...
Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was...
Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was $100,000 in 2018. They pay $700 per month for health insurance coverage. Bea was a homemaker. In early February, she started working for a company, and both of them became eligible to participate in her employer’s health plan on March 1, 2018. However, they didn’t want to switch insurance providers, so Bea declined her employer’s coverage. How much is their health insurance deduction for...
1. Scott is a self-employed plumber and his wife, Emily, is a full-time employee for a...
1. Scott is a self-employed plumber and his wife, Emily, is a full-time employee for a University. Emily has health insurance from a qualified plan provided by the University, but Scott has chosen to purchase his own health insurance rather than participate in Emily's plan. Besides paying $5,590 for his health insurance premiums, Scott also pays the following expenses associated with his plumbing business: Plumbing tools and supplies       $1,490​ Rent on Scott's plumbing shop   6,440​ Transportation between Scott's shop and various...
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his...
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following: Income Statement Scott Butterfield, CPA Income Statement 12/31/2017 Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $276,400 $72,154 Accounting Services 27,640 50,256 Other Consulting Services 60,808 7,690...
Colin, a self-employed consultant, uses a room of his home as a business office. This room...
Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home’s square footage. This year, Colin incurred the following expenses in connection with his home: Use Table 7-3 and Table 7-4. Home mortgage interest $ 12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace repairs 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000...
Colin, a self-employed consultant, uses a room of his home as a business office. This room...
Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home's square footage. This year, Colin incurred the following in connection with his home: Home Mortgage interest $12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace Repairs 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. a. If Colin’s gross business...
Problem 6-16 Self-Employment Tax (LO 6.6) Stewart Beauf is a self-employed surfboard maker in 2019. His...
Problem 6-16 Self-Employment Tax (LO 6.6) Stewart Beauf is a self-employed surfboard maker in 2019. His Schedule C net income is $126,503 for the year. He also has a part-time job and earns $16,100 in wages subject to FICA taxes. Calculate Stewart's self-employment tax for 2019 using Schedule SE. If required, round amounts to the nearest dollar. Enter all amounts as positive numbers. If a line item does not require an entry or the answer is zero, enter "0".
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT