On October 22, an Idaho First National Bank loan officer orally agreed to loan Black Canyon Racquetball Club, Inc. around $174,000 at an interest rate of 13.75%, but that rate could be changed when the loan was made if the "market" interest rates changed.
This was to be a Small Business Administration loan to remodel the club. This loan would be made once the club sold 150 memberships. However, the types of memberships were not specified. The club offered full-single, fitness-only, racquetball only, corporate, and student memberships all at different membership costs. The club started the remodel and submitted two applications for a loan, both of which were denied because they did not meet the SBA’s requirements and the cash flow and projections were not believable. The club sued the bank on the theory of promissory estoppel. Define promissory estoppel, and tell why this theory will or will not favor the club.

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)

Acoase solution to a problem of externality ensures that a socially efficient outcome is to