The journal entry made by Tubman to record the dishonored note is Debit accounts receivable-Valley spa $9,120, Credit interest revenue $120; credit notes receivable $9,000.
<u>Journal Entry for dishonor of notes receivable:</u>
<u>Account title and explanation</u> <u>Debit</u> <u>Credit</u>
Accounts receivable-Valley Spa $9,120
Interest revenue [$9,000 x 8% x (60/360)] $120
Notes receivable $9,000
- A note receivable is a written agreement to pay a specific sum of money to another party on one or more dates in the future. The holder of the note views this as an asset. In order to give the debtor more time to pay, past-due accounts receivable are occasionally changed into notes receivable. These notes occasionally also include a personal guarantee from the debtor's owner.
- The party obligated to send money to the payee is known as the maker, and the party receiving payment under the terms of the note is known as the payee. The principle is the amount of the payment that is required, as specified in the terms of the note. On the date the note matures, the principal is to be paid.
Learn more about Notes receivable, here
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Answer:
In six years the investment will be worth $4421
Explanation:
The investment of $1500 will receive interest payment at 12% p.a. The interest payments are like an annuity as the amount is fixed and is paid after equal intervals and for a definite period i.e. 6 periods.
To calculate the worth of investment 6 years from now, we need to calculate the future value of both the principal and interest annuity after 6 years.
The formula for future value of principal is = PV * (1+r)^t
Future value of principal = 1500 * (1+0.12)^6 = $2960.73
The formula for future value of annuity is given is:
FV of ordinary annuity = PMT * [ ((1+i)^t - 1) / i]
Where,PMT is the periodic interest payment. The interest payment is = 1500 * 0.12 = $180 per year
Future value of annuity = 180* [ ((1+0.12)^6 - 1) / 0.12]
Future value of annuity = $1460.73
The total value of investment = 2960.73 + 1460.73 = $4421.46 rounded off to $4421
Answer:
Option (a) is correct.
Explanation:
Given that,
Value of good and services exported from Kandabar = $75 million
Value of good and services imported by Kandabar = $52 million
Therefore,
Balance of trade or trade balance:
= value of exports - value of imports
= $75 million - $52 million
= $23 million
Since the value of exports is greater than the value of imports, the nation has a trade surplus of $23 million.
Answer:
If you had purchased 10 shares of GoPro at the IPO (Initial Public Offering) on June 26, 2014 at 31.34, you would have spent <u>$313.40</u>.
If you were more of a “gambler” than an “investor”, and you saw the market shoot up for GoPro and hit 86.97 just 3 months later and decided to SELL, you would have recognized a capital gain of <u>$869.70 - $313.40 = $556.30</u>.
This would have resulted in a YIELD of <u>($556.30 / $313.40) x 100 = 177.5%</u>.
Let’s say you hung on to your 10 shares of GoPro, believing that it would get even better. Today it is listed at 4.42. If you were to sell, you would recognize a loss of <u>$44.20 - $313.40 = -$269.20</u>.
This would result in a YIELD of <u>(-$269.20 / $313.40) x 100 = -85.9%</u>.
The average annual yield for 5.5 years would then be <u>-12%</u>.
Look up GoPro today. GoPro currently trading at <u>$8.63 (January 7, 2021)</u>.
Explanation:
1 + 0.859 = (1 + r)⁵°⁵
⁵°⁵√1.859 = ⁵°⁵√(1 + r)⁵°⁵
1.12 = 1 + r
r = -0.12 (since the yield was negative, r must be negative)