Answer:
Dr Cash $8,670
Cr Interest Revenue $170
Cr Note Receivable $8,500
Explanation:
As we know that the interest given is for a year, so we should calculate the interest rate for a unit month, which is calculated as under:
Interest per month = 0.08/12 = 0.0067
Interest revenue = Note Value * Interest rate per month * Number of months
Interest revenue = $8,500 * 0.0067 * 3
Interest revenue = $170
The double entry would be as under:
Dr Cash $8,670 .... ($8,500 Note Value + $170 Interest Revenue)
Cr Interest Revenue $170
Cr Note Receivable $8,500
The diversification tells us that spreading an investment across many diverse assets will eliminate all of the total risk. Thus the first option is correct.
<h3>What is Risk?</h3>
Risk refers to the situation will involves certain degree of the danger. Risk can be good or bad as it is very uncertain. If the risk is good it leads to profits to the business and vice versa.
The concept of the diversification refers to the investing in the different sectors in order to mitigate the losses in one particular sector. It is a kind of the calculated risk taken by the businessmen.
Thus the first option is correct that spreading an investment across many diverse assets will eliminate all of the total risk.
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No it never has. I just focus a lot and try not to look if my classroom is decorated.
Answer:
The depreciation expenses will be "950 and 3610". A further explanation is given below.
Explanation:
The given values are:
Cost,
= $21,500
Salvage value,
= $2,500
Asset's total life,
= $100,000
Now,
The Depreciation rate will be:
=
On putting the values, we get
=
=
=
So,
For the year 2021, the depreciation expense will be:
=
=
=
For the year 2022, the depreciation expense will be:
=
=
=