Answer:
D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.
Explanation:
Interest: $7,200 × .06 × 120/360 = $144
The entry that Majesty should record on the maturity date for this dishonored note is :
Debit Accounts Receivable $7,344
Credit Interest Revenue $144
Credit Notes Receivable $7,200.
Answer:
0.05712790 or 5.71%
Explanation:
Annual rate of return = [(1+ r1)^n1 x (1 + r2)^n2]^[1/(n1 + n2)] - 1
n1 is the time period in which annual interest rate =2.8%
n2 is the time period in which annual interest rate =7.2%
So, n1 = 7 years and n2 = 14 years
= [(1+2.8%)^7 x (1+7.2%)^14]^[1/(7 + 14)] - 1
= (1.21325420 x 2.64683577) ^ 1 / 21 - 1
= 1.05712790 - 1
= 0.05712790 or 5.71%
Answer:
A) The balance sheet will report the note receivable of $8,400
Explanation:
Notes receivables and promissory notes are part of the Notes Receivables account, which is an asset account in the balance sheet. They are recorded as follows:
- Dr Notes Receivable account 8,400
- Cr Accounts Receivable account 8,400
Both accounts are asset accounts, but notes receivable is replacing accounts receivable. Therefore since notes receivable is increasing, it should be debited, and since accounts receivable is decreasing, it should be credited.
You don't record any interest, only after the interest is paid, you should record it as interest revenue.
Answer:
(C) Productive activities.
Explanation:
All the actions detailed are traits of a public power that respect the free market as a system that allocates resources as efficiently as possible. In this case, the public system works for the mechanism of prices functions based on private decisions and firms can rely upon that none public disturbance arises in the future. The other 3 options used to occur when public institutions intervene in the free market.
