Auto Loan - installment, secured, fixed
Credit Cards - installment, unsecured, CBE
Mortgage - installment, secured, variable
Payday loan - CBE, secured, and CBE
Personal loan - installment, unsecured, CBE
Small businesses - CBE, unsecured, CBE
Student loan - installment, unsecured, CBE
I believe that’s right. I’m so sorry if it isn’t.
The expiration date must be marked on ready to eat bags.
Answer and Explanation:
The Journal entries is shown below:-
Jan 31
Investment in Govt Bonds Dr, $75,000
Interest Receivable Dr, $375
To Cash 75,375
(Being cash is recorded)
July 31
Cash Dr $2,250
To Interest Receivable $375
To Interest Income 1,875
($75000 × 6% × 5 ÷ 12)
(Being interest on bond is recorded)
Aug 30
Cash Dr, $34,650
Loss on Sale of Bonds Dr, $700
($35,000 - 980 × $35)
To Investment in Govt Bonds $35,000
To Interest Income $350
(Being loss on sale is recorded)
Dec 31
Interest Receivable Dr, $1,200
To Interest Income $1,200
(40 × $1,000 × 6% × 6 ÷ 12)
(Being interest on bonds is recorded)
Answer:
We have to find the value of Larry's investement before and after the issue of new shares, to see if Larry's worries are justified.
The current value of Larry's investment is:
2,000 x $41.00 = $82,000
To find the value of Larry's investment if the new shares are issued, we use the following formula:
Investment = ¨[[(Oustanding shares x price per share) + (New issue of shares x price per share)]/ Outsanding shares + new issue] x No. of shares held
Investment = [[(20,000 x 41.00) + (5,000 x 32.80)] / 20,000 + 50,000] x 2,000
Investment = 39.36 x 2,000
Investment = $78,720
Thus, if the new shares were issued, Larry's investment value in the company would fall from $82,000 to $78,720, confirming his reasons to be worried.
