Answer:
forest/trees
Explanation:
On January 1, 2021, LLB Industries borrowed $200,000 from Trust Bank by issuing a two-year, 10% note, with interest payable quarterly. LLB entered into a two-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. Its intent was to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. The agreement called for the company to receive payment based on a 10% fixed interest rate on a notional amount of $200,000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating (LIBOR) settlement rates were 10% at January 1, 8% at March 31, and 6% at June 30, 2021. The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as follows: January 1 March 31 June 30 Fair value of interest rate swap 0 $ 6,472 $ 11,394 Fair value of note payable $ 200,000 $ 206,472 $ 211,394 Required: Prepare the journal entries through June 30, 2021, to record the issuance of the note, interest, and necessary adjustments for changes in fair value.
Answer:
1/01
Dr Cash $200,000
Cr To notes payable $200,000
31/03
Dr Interest expense $5,000
Cr To cash $5,000
Dr Cash $1,000
Cr To interest expense $1,000
Dr Interest rate swap (asset) $6,472
Cr Holding gain—interest rate $6,472
Dr Holding loss $6,472
Cr notes payable $6,472
30/06
Dr Interest expense $5,000
Cr To cash $5,000
Dr Cash $2,000
Cr To interest expense $2,000
Dr Interest rate swap [asset] $4,922
Cr Holding gain—interest rate swap 4,922
Dr Holding loss—hedged note $4,922
Cr Note payable $4,922
Explanation:
Preparation of the journal entries through June 30, 2021, to record the issuance of the note, interest, and necessary adjustments for changes in fair value
1/01
Dr Cash $200,000
Cr To notes payable $200,000
(To record the issuance of the note)
31/03
Dr Interest expense $5,000
Cr To cash $5,000
(200,000 * 10% * 1/4)
( To record Interest)
Dr Cash $1,000
[5,000 -(8%* 1/4 * 200,000)]
Cr To interest expense $1,000
(To record the net Cash settlement)
Dr Interest rate swap (asset) $6,472
($6,472 – 0)
Cr Holding gain—interest rate $6,472
(To record change in net value of the derivative)
Dr Holding loss $6,472
Cr notes payable $6,472
($206,472- $200,000)
(To record change in net value of the note)
30/06
Dr Interest expense $5,000
($200,000 * 10% * 1/4)
Cr To cash $5,000
(To record Interest)
Dr Cash $2,000
[$5,000-(6% * 1/4 * $200,000)
Cr To interest expense $2,000
(To record the net Cash settlement)
Dr Interest rate swap [asset] ($11,394 – 6,472)$4,922
Cr Holding gain—interest rate swap 4,922
(To record change in fair value of the derivative)
Dr Holding loss—hedged note $4,922
Cr Note payable ($211,394 – 206,472) $4,922
(To record change in fair value of the note)
The journal entries through to record the issuance of the note, interest, and necessary adjustments for changes in fair value will be:
1st January:
Dr Cash $200,000 Cr Notes payable $200,00031st March
Dr Interest expense $5,000 Cr To cash $5,000Dr Cash $1,000 Cr Interest expense $1,000Dr Interest rate swap (asset) $6,472Cr Holding gain—interest rate $6,47230 June
Dr Interest expense $5,000 Cr To cash $5,000Dr Cash $2,000Cr interest expense $2,000Dr Interest rate swap [asset] $4,922Cr Holding gain—interest rate swap 4,922Dr Holding loss—hedged note $4,922Cr Note payable $4,922It should be noted that the interest expense on 31st March was calculated as:
= 200000 × 10% × 1/4
= 5000
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Since a cell phone is a private good, if Neha chooses to spend $300 on a cell phone, Neha would get $300 of benefit from the cell phone and Teresa wouldn't receive any benefit from Neha's choice. If Neha still spends $300 on a cell phone and Teresa chooses to contribute $300 to the public park, Neha would still receive the $270 of benefit from Teresa's generosity. In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of $300 $270
Answer:
In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of:
$570.
Explanation:
Neha has, in this situation, maximized his benefits to the detriment of the public good. This is an illustration of the tragedy of the commons. The tragedy of the common is an economic problem that explains the loss that the society incurs when some persons like Neha neglect to contribute to the common good because they are solely concentrated on pursuing their individual goals for personal gains.
The Goodyear Tire & Rubber Company’s December 31, 2016 financial statements reported the following (in millions): Total assets $16,511 Total liabilities 11,786 Total shareholders’ equity 4,725 Dividends 82 Net income (loss) 1,264 Retained earnings, December 31, 2015 4,570 What did Goodyear report for retained earnings at December 31, 2016?
Answer:
$5,752
Explanation:
Calculation for What did Goodyear report for retained earnings at December 31, 2016
Using this formula
Retained earnings at December 31, 2016=Beginning retained earnings + Net income - Dividends
Let plug in the formula
Retained earnings at December 31, 2016=$4,570 + $1,264 - $82
Retained earnings at December 31, 2016=$5,752
Therefore What did Goodyear report for retained earnings at December 31, 2016 is $5,752
A group of users can perform certain operations on a shared workbook. Which option helps them to update and track changes in the shared workbook?
The
option allows all group members to update information and track changes in the workbook.
Answer: Edit option allows everyone in a group to edit the contents work
Explanation:
Hope it helps
Bonds issued by XYZ have a par value of $1000, were priced at $1,220.00 six months ago, and are priced at $1,140.00 today. The bonds pay semi-annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -2.10%, then what is the current yield of the bonds today
Answer:
9.54%
Explanation:
-0.021 = ($1,140 + D - $1,220) / $1,220
-$25.62 = -$80 + D
$54.38 = Dividend (semiannual)
current yield = annual dividends / current price
annual dividends = $54.38 x 2 = $108.76
current price = $1,140
current yield = $108.76 / $1,140 = 0.0954 = 9.54%
Crisp Cookware's common stock is expected to pay a dividend of $1.75 a share at the end of this year (D1 = $1.75); its beta is 0.6. The risk-free rate is 5.8% and the market risk premium is 5%. The dividend is expected to grow at some constant rate, gL, and the stock currently sells for $80 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
P3 = $96.9425 rounded off to $96.94
Explanation:
To calculate the market price of the stock three years from today (P3), we will use the constant growth model of DDM. The constant growth model calculates the values of the stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1) / (r - g)
Where,
D1 is the dividend expected for the next period g is the constant growth rate r is the required rate of return on the stock
To calculate the price of the stock today (P0), we use the dividend expected for the next period (D1). So, to calculate the price at the end of 3 years (P3) we will use D4.
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * rpM
Where,
rRF is the risk free rate rpM is the market risk premium
r = 0.058 + 0.6 * 0.05
r = 0.088 or 8.8%
Using the price formula for DDM above and the values for P0, D1 and r, we can calculate the g to be,
80 = 1.75 / (0.088 - g)
80 * (0.088 - g) = 1.75
7.04 - 80g = 1.75
7.04 - 1.75 = 80g
5.29/80 = g
g = 0.066125 or 6.6125%
We first need to calculate D4.
D4 = D1 * (1+g)^3
D4 = 1.75 * (1+0.066125)^3
D4 = 2.12061793907
Using the formula from DDM for P3, we can calculate P3 to be,
P3 = 2.12061793907 / (0.088 - 0.066125)
P3 = $96.9425 rounded off to $96.94
Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Common Resource Club Good A stationary bike in a fitness room that is open to the public A large, beautiful statue in a town square A new Ferrari that you use to drive your friends around town
Answer:
COMMON RESOURCE
PUBLIC GOOD
PRIVATE GOOD
Explanation:
In general, improvements in technology that is used to produce a good will result in ___________.
a decrease in supply
a shortage of the good
an increase in supply
higher operating costs
Answer:
first one
Explanation:
because I am a teacher and I know this
Kinetic Company estimates that overhead costs for the next year will be $1,600,000 for indirect labor and $400,000 for factory utilities. The company uses direct labor hours as its overhead allocation base, and plans to use 50,000 direct labor hours for this next year. If a product uses 5 direct labor hours, then it will be assigned $200 in overhead costs.a. True
b. False
Answer:
The correct answer is "False".
Explanation:
The given values are:
Indirect labor,
= $1,600,000
Factory utilities,
= $400,000
Direct labor hours,
= $50,000
Now,
The plantwide overhead rate will be:
= [tex]\frac{Indirect \ labor +Factory \ utilities}{Direct \ labor \ hours}[/tex]
On substituting the values, we get
= [tex]\frac{1,600,000+400,000}{50,000}[/tex]
= [tex]\frac{2,000,000}{50,000}[/tex]
= [tex]40[/tex] ($) direct labor per hour
Thus the above is the right response.
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $596,000 $170,000 $426,000 Variable expenses 338,000 103,700 234,300 Contribution margin 258,000 66,300 191,700 Traceable fixed expenses 116,060 39,200 76,860 Segment margin 141,940 $ 27,100 $ 114,840 Common fixed expenses 43,950 Net operating income $ 97,990 The break-even in sales dollars for Division Q is closest to:
Answer:
$100,512
Explanation:
Break even point is the level at which a Company makes neither a profit nor a loss.
Break Even (Sales Dollars) = Fixed Costs ÷ Contribution margin
therefore,
Break Even (Sales Dollars) = $39,200÷0.39
= $100,512
The break-even in sales dollars for Division Q is closest to $100,512
A ski chalet at Peak n' Peak now costs $250,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 10 years before Chris and Julie retire from successful investment banking careers. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the ski chalet upon retirement
Answer:
$22,108
Explanation:
The computation is shown below:
Required deposit each year (P) = FVA ÷ ([(1+rate of interest)^number of years-1]÷rate of interest)
= $407,224 ÷ (((1+13%)^10-1) ÷ 13%)
= $22,108
The $407,224 comes from
= $250,000 × (1+5%)^10
Question 5 (10 points)
When you are doing employment planning, what sources of information would you
use to help develop your startegy? Explain.
The B2C salesperson's goal in the approach step is to be_____ and ________.
Answer:
Friendly knowledgeable
Explanation:
During its first year of operations, Mack's Plumbing Supply Co. had sales of $550,000, wrote off $8,800 of accounts as uncollectible using the direct write-off method, and reported net income of $60,500. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible.
Answer:
$60,500
Explanation:
With regards to the above, the write off does not affect the realizable value of accounts receivables. Also, the total asset or net income is not affected by the write off or specific account. Instead, both assets and net income are affected in the period when bad debt expense is predicted and then recorded with an adjusting entry.
Accounts receivables
$550,000
Less:
Allowance for doubtful account
($550,00 × 2.5%)
($13,750)
Estimated realizable accounts receivables
$536,250
If the amount of bad debt decreases or increases as given below, then the income is also increased or decreased by the amount given.
Bad debts = $13,750
Uncollectible previously written off = $8,800
Difference
$4,950
Net income
$60,500
Less:
Difference
($4,950)
Reported income
$55,550
Let D0 and S0 be the initial demand and supply curves for gasoline. Let P* and Q* be the initial equilibrium in this market. There is an increase in incomes due to a technology boom. Which ONE of the following correctly captures the effect of this change on the market for gasoline? Question 3 options: Both equilibrium quantity and price will increase Both equilibrium quantity and price will decrease Equilibrium quantity will increase, but equilibrium price will decrease Equilibrium quantity will decrease, but equilibrium price will increase
Answer: Both equilibrium quantity and price will increase
Explanation:
If there is an increase in income, it means that people can afford to buy more gasoline or rather will buy more things that need gasoline such as cars.
The demand for gasoline will therefore go up and shift the demand curve to the right. The demand curve will then intersect with the supply curve at a higher equilibrium price and quantity.
Which of the following is not an important factor to assess when identifying appropriate precedent transactions?
Answer:
how to answer that ?????
The factor that is not important for the identification of precedent transactions is Accretive/dilutive effect of the transaction on the acquirer. Thus, option 2nd is correct.
What is precedent transaction?Precedent transaction refers to the valuation process of the price being paid for the similar companies in the past is taken into account as a gauge of a valuation of company's value.
An estimation of a share's value in the event of an acquisition is produced through precedent transaction analysis. It is the limitation of the precedent transaction that past cost may not reflect the prevailing conditions of the market.
Therefore, it can be concluded that The accretive or dilutive effect of the acquisition on the acquirer is a criterion that is not crucial for identifying prior transactions. Hence, option 2nd is correct.
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Your question is incomplete, but most probably the full question was...
Which of the following is not an important factor to assess when identifying appropriate precedent transactions?
1) Transaction rationale
2) Accretive/dilutive effect of the transaction on the acquirer
3) Transaction size
4) Industry & financial characteristics
Vernon Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 209 boats at a total cost of $154,800. The low point in production occurred in January when it produced 31 boats at a total cost of $48,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Vernon Boat Company. Determine the total estimated cost if 110 boats are made.
Answer:
Total cost= $95,400
Explanation:
First, we need to calculate the unitary and fixed costs using the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (154,800 - 48,000) / (209 - 31)
Variable cost per unit= $600
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 154,800 - (600*209)
Fixed costs= $29,400
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 48,000 - (600*31)
Fixed costs= $29,400
Now, the total cost for 110 boats:
Total cost= 29,400 + 110*600
Total cost= $95,400
CalMark is a privately held company, so there is no information about beta available. However, a company in the same business with a debt to equity ratio the same as that of CalMark is publicly traded and has a beta which is two times that of the market. If the risk free rate is 4%, and the market risk premium is 5%, what is the estimated cost of existing equity for CalMark
Answer:
r - Calmark = 14%
Explanation:
Based on the comparative company analysis and using the CAPM we can calculate the required rate of return for CalMark. The comparative company analysis means to use the companies similar to the subject company to assume various ratios and factor about the subject company.
The formula to calculate the cost of equity which is also known as the required rate of return (r) is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumThe beta for market is always equal to 1. So a beta twice of the market will be 2.
r - Calmark = 4% + 2 * 5%
r - Calmark = 14%
Refinancing a loan. About Suppose someone takes out a home improvement loan for $30,000. The annual interest on the loan is 6% and is compounded monthly. The monthly payment is $600. Let an denote the amount owed at the end of the nth month. The payments start in the first month and are due the last day of every month.
(a) Give a recurrence relation for an. Don't forget the base case.
(b) Suppose that the borrower would like a lower monthly payment. How large does the monthly payment need to be to ensure that the amount owed decreases every month? Feedback?
Answer:
[tex](a)[/tex] [tex]A_n = A_{n-1}(1.005) - 600[/tex] where [tex]A_0 = 30000[/tex]
(b) Above $150
Explanation:
Given
[tex]Loan = \$30000[/tex]
[tex]Rate =6\%[/tex] --- annually
Solving (a): Recursion for the amount at the end of n month
The base case is:
[tex]A(0) = 30000[/tex]
Next, we calculate the monthly rate (r)
[tex]r = \frac{Annual\ Rate}{12}[/tex]
[tex]r = \frac{6\%}{12}[/tex]
[tex]r = 0.5\%[/tex]
[tex]r = 0.005[/tex]
The loan amount remaining at the end of month n is then calculated as:
[tex]A_n = A_{n-1}*(1 + r) - 600[/tex] ---[The 600 represents the monthly payment]
[tex]A_n = A_{n-1}*(1 + 0.005) - 600[/tex]
[tex]A_n = A_{n-1}(1.005) - 600[/tex]
Solving (b):
Suppose the borrower requests for a lower monthly payment, then the following condition will exist:
[tex]P > A_{n-1} *0.005[/tex]
i.e. the monthly payment will exceed the monthly interest
Let [tex]n= 1[/tex]
[tex]P > A_{1-1} *0.005[/tex]
[tex]P > A_0 *0.005[/tex]
Substitute 30000 for [tex]A_0[/tex]
[tex]P > 30000 *0.005[/tex]
[tex]P > 150[/tex]
His monthly payment must exceed $150
a. Which of the following items might you include in the basket of goods and services for the average student? The basket should include:______
a. cafeteria meals.
b. washing machines.
c. textbooks.
d. pens.
b. One of the primary expenses in a student’s basket is tuition, which is also included in the BLS calculation of the CPI. Consider the portion of total expenditure tuition accounts for in a student's budget versus a typical household's budget. Given that difference, the value of the student's basket over time has likely changed ________than the CPI.
Answer:
A. a. cafeteria meals.
c. textbooks.
d. pens.
B. More
Explanation:
Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.
Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.
Under an installment contract, a buyer can:
a. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
c. Reject an installment no matter how minor the nonconformance is.
d. None of these answers.
Answer:
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
Explanation:
In installment contract, the seller and the buyer agrees on the ways through which the buyer will pay for the goods which he or she purchases installmentally rather than a one off payment. In a situation where the agreement has been reached, it expected that the buyer and the seller to conform to the said agreement. However,the seller is hold in breach of the entire installment contract if there is impairment of the value of the goods substanstially.
Cynthia is ready to apply to a four-year private college. Evaluate her eligibility for financial ald.
Select the best answer from the choices provided.
OA. She will not be eligible to receive federal loans.
OB. She will be eligible to walve any interest on private loans.
Ос. .
She will be eligible to receive grants.
OD She will not be eligible to receive scholarships.
Answer:
C.
Explanation
A - Private schools recieve federal funds and so can their students.
B - Some private loans can waive interest, but not all.
D - any student can receive scholarships, if they qualify or if the are awarded the scholarship after applying.
Good luck in your studies.
What is the most money that an investor could lose if they buy 40 shares of electriccarco for $25/share
Answer:
$300
Explanation:
You are thinking about the things that can go wrong on your trip home over the Thanksgiving break. You have booked a flight with US-Scareways. You know that in 35 percent of the cases the company has canceled the flight you were on. Should such a thing occur, there would be no other air travel option home for you. As a backup, your friend Walter has offered you a ride back. However, you know that Walter only has a seat in his car for you with 70 percent probability.
What is the probability of you making it home for the holidays?
Answer: 89.5% or 0.895
Explanation:
Probability of you making it home if the flight is canceled:
= Probability that flight is canceled * probability that Walter has a seat
= 35% * 70%
= 24.5%
Probability of you making it home by flight:
= 100% - 35%
= 65%
Probability of you making it home for the holidays:
= Prob. if flight is canceled + Prob. by flight
= 24.5% + 65%
= 89.5%
Diversity increases the importance of
Answer:
Diversity increases an organization's capacity to meet the needs of a diverse society.
A diverse workplace reflects the population it serves, making it more effective.
Increasing diversity in the organization leads to greater creativity and gives better results.
On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $60,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 25% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 80% occupancy threshold to a 60% chance. What is the total amount of revenue Emmet should recognize on this contract in November of 2021
Answer:
$7,500
Explanation:
Calculation to determine the total amount of revenue Emmet should recognize on this contract in November of 2021
First step is to calculate the revenue amount recognized for July, August, September, and October
Recognized revenue =$60,000 × 4/12
Recognized revenue = $20,000
(July, August, September, and October=4 months )
Second step is to calculate the revenue amount to be recognized at the beginning of November
Recognized revenue= $60,000 + ($60,000 × 10%)
Recognized revenue= $66,000
Third step is to calculate the revenue amount recognized at the end of November
Recognized revenue=$66,000 × 5/12
Recognized revenue = $27,500
Now let calculate the total amount of revenue Emmet should recognize on this contract in November of 2021
Total Recognized revenue=$27,500 - $20,000
Total Recognized revenue=$7,500
Therefore the total amount of revenue Emmet should recognize on this contract in November of 2021 will be $7,500
On October 1, 2018, Jarvis Co. sold inventory to a customer in a foreign country, denominated in 100,000 local currency units (LCU).Collection is expected in four months. On October 1, 2018, a forward exchange contract was acquired whereby Jarvis Co. was to pay 100,000 LCU in four months (on February 1, 2019) and receive $78,000 in U.S. dollars. The spot and forward rates for the LCU were as follows:
Rate DescriptionExchange Rate .83-1 LCU 5.85 1 LCU Spot rate: Spot rate: 1-Month Forward Rate $.be = 1 LCU Spot rate: October 1, 2018 December 31, 2018 February 1, 2019 .86 1 LCU The,company's borrowing rate is 12%. The present value factor for one month is .9901. Any discount or premium on the contract is amortized using the straight-line method , Assuming this is a cash flow hedge:
prepare journal entries for this sales transaction and forward contract.
Answer:
10/1/2018
Dr Accounts receivable $83,000
Cr Sales $83,000
12/31/2018
Dr Accounts receivable $2,000
Cr Foreign exchange gain $2,000
12/31/2018
Dr Loss on forward contract $1,980
Cr Forward contract $1,980
2/1/2018
Accounts receivable $1000
Cr Foreign exchange gain $1000
2/1/2018
Dr Loss on forward contract $6,020
Cr Forward contract $6,020
2/1/2018
Dr Foreign currency
$86,000
Accounts receivable $86,000
2/1/2018
Dr Cash $78,000
Dr Forward contract $8,000
Cr Foreign currency $86,000
Explanation:
Preparation of the journal entries for the sales transaction and forward contract.
10/1/2018
Dr Accounts receivable (100000*0.83) $83,000
Cr Sales $83,000
12/31/2018
Dr Accounts receivable $2,000
[100,000*(0.85-0.83)]
Cr Foreign exchange gain $2,000
12/31/2018
Dr Loss on forward contract $1,980
[((0.80-0.78)*100000)*2000*0.9901]
Cr Forward contract $1,980
2/1/2018
Accounts receivable $1000
[100000*(0.86-0.85)]
Cr Foreign exchange gain $1000
2/1/2018
Dr Loss on forward contract $6,020
(78000/100000 = 0.78)
[ ((0.78-0.86)*100000) = 8000-1980=6020]
Cr Forward contract $6,020
2/1/2018
Dr Foreign currency (100000*0.86)
$86,000
Accounts receivable $86,000
2/1/2018
Dr Cash $78,000
Dr Forward contract $8,000
($86,000-$78,000)
Cr Foreign currency (100000*0.86) $86,000
Information related to Blue Spruce Corp. is presented below.1.
1. On April 5, purchased merchandise on account from Whispering Winds Company for $44,800, terms 4/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $830 on merchandise purchased from Whispering Winds.
3. On April 7, purchased equipment on account for $42,500.
4. On April 8, returned damaged merchandise to Whispering Winds Company and was granted a $4,600 credit for returned merchandise.
5. On April 15, paid the amount due to Whispering Winds Company in full.
Required:
Prepare journal entries to record these transactions on the books of Lor Co. using a periodic inventory system.
Answer:
April 5
Dr Inventory $44,800
Cr Accounts Payable $44,800
April 6
Dr Inventory $830
Cr Cash $830
April 7
Dr Equipment $42,500
Cr Accounts Payable $42,500
Dr Accounts Payable $4,600
Cr Inventory credit $4,600
On April 15
Dr Accounts Payable (Inventory before discounts) credit 40200
($44,800 - $4,600)
Cr Cash (Inventory after discounts) credit 38592
Cr 40200-1608)
Cr Inventory (discounts) 1608
(40200 * 0.04 )
Explanation:
Preparation of journal entries to record these transactions on the books of Lor Co. using a periodic inventory system.
April 5
Dr Inventory $44,800
Cr Accounts Payable $44,800
April 6
Dr Inventory $830
Cr Cash $830
April 7
Dr Equipment $42,500
Cr Accounts Payable $42,500
Dr Accounts Payable $4,600
Cr Inventory credit $4,600
On April 15
Dr Accounts Payable (Inventory before discounts) credit 40200
($44,800 - $4,600)
Cr Cash (Inventory after discounts) credit 38592
Cr 40200-1608)
Cr Inventory (discounts) 1608
(40200 * 0.04 )
what is a bond? in your own words. economics.
Answer:
A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.
Explanation:
Answer:
A bond is a fixed income Instrument that represents a loan made by investors to a borrower ( typically corporate or governmental).
Which of the following costs is most likely NOT included in a bill from the university for a college student living on campus?
Select the best answer from the choices provided.
OA. tuition
OB.
cell phone
Ос.
fees
OD. housing
Answer:
B. cell phone
Explanation:
Out of all the following costs, the most likely not to be included in a bill from the university for a college student living on campus is "Cell Phone."
This is because except a student is on full scholarship, Tuition is a must cost to be included in the bill.
Also, student fees that cover extra costs like insurance, and health care are usually included in student bills.
Similarly, the housing cost covers a hostel or off-campus accommodation for students. Hence it is also included in the student bill.
Hence, the correct answer is the cost of a "Cell phone." Which doesn't concern the school whether a student has or not.
