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algol [13]
3 years ago
13

On september 1, knack company signed a $50,000, 90-day, 5% note payable with central savings bank. what is the journal entry tha

t should be recorded by knack upon maturity of the note? (use 360 days a year.)
Business
1 answer:
shepuryov [24]3 years ago
5 0
<span>The Journal entry upon the 90 days (1/4 using 360 days a year) maturity at 5% rate should be $50,000 plus the Interest (I). Let Journal Entry upon Maturity be J Where J = Initial Signed Note + Initial Signed Note * Rate * Time Which is also written as J = Initial signed Note (1 + Rate * Time) Therefore J = 50,000 (1+5/100*1/4) = 50,625</span>
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Here are data on two stocks, both of which have discount rates of 8%: Stock A Stock B Return on equity 8 % 5 % Earnings per shar
AfilCa [17]

Answer:

Please sew solution below

Explanation:

a. What are the dividend payout ratios for each firm

Dividend payout ratio = Dividend / EPS

• Payout ratio stock A = $1.30 / $2.6 = 0.5= 50%

• Payout ratio stock B = $1.3 / $1.8 = 0.72222 = 72.22%

b. What are the expected dividend growth rates for each stock.

Growth rate = ROE × (1 - dividend payout ratio)

•Growth rate stock A = 0.08 × (1 - 50%) = 0.04 = 4%

• Growth rate stock B = 0.05 × (1 - 72.22%) = 0.01389 = 1.39%

c. What is the proper stock price for each firm

• Stock A

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.04)

= 1.352

Stock B

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.013)

= 1.3169

Therefore,

• Stock A's proper price = $1.352 / (0.08 - 0.04) = $33.8

• Stock B's proper price = $1.3169 / ($0.08 - $0.013) = $19.66

6 0
3 years ago
1. A major controversy that is yet to be resolved about the Medicare Prescription Drug, Improvement and Modernization Act of 200
qaws [65]

Answer:

C. What the program will ultimately cost the federal government

Explanation:

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was an attempt to make improvements or amendments to the Social Security Act.  It radically changed the playing field for private plans participating in the Medicare program by substantially raising monthly payment rates in an effort to stabilize the market and reverse the decline in benefit generosity.  It also provided for voluntary prescription drugs under the medicare program.  However, the utilization and cost of the program skyrocketed as soon as the funding source was established.  It has remained unknown what the program will ultimately cost the federal government, no wonder the current administration under Trump wants to turn it upside down.

3 0
3 years ago
Klose Outfitters Inc. believes that its optimal capital structure consists of 60 percent common equity and 40 percent debt, and
Eduardwww [97]

Answer:

WACC 10.38305%

Explanation:

<em><u>First we solve for the source of financing:</u></em>

Expansion: 5,900,000

60% Equity: 3,540,000

Retained Earnins 2,000,000

then 1,540,000 will be common equity

40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient

D  2,360

E  1,540

RE 2000

V  5,900

Now we can solve for Weighted average cost of capital

WACC = K_e(\frac{E}{E+RE+D}) + K_{re}(\frac{P}{E+RE+D}) + K_d(1-t)(\frac{D}{E+RE+D})

Ke 0.15

Equity weight 0.261016949 (1,540,000 / 5,900,000)

Kre 0.12

RE Weight  0,338983  (2,000,000 / 5,900,000)

Kd 0.1

Debt Weight 0.4 ( 2,360,000 / 5,900,000)

t 0.4

WACC = 0.15(0.261016949152542) + 0.12(0.338983050847458) + 0.1(1-0.4)(0.4)

WACC 10.38305%

5 0
3 years ago
The marginal benefit of another T-shirt this month to Mary is $15. If the $10 price of a T-shirt reflects its marginal cost to M
DaniilM [7]

Answer:

The correct answer is option d.

Explanation:

The marginal benefit of another T-shirt is $15. The price of the T-shirt is $10.  

The marginal cost is equal to the price, so it is also $10.  

The marginal benefit earned from the T-shirt is greater than the marginal cost incurred on a T-shirt.  

According to economic reasoning, it is profitable to buy another T-shirt. So, Mary will buy another T-shirt this month.

5 0
3 years ago
The board of directors of Blue Spruce Corp. declared a cash dividend of $2 per share on 42000 shares of common stock on July 15,
lyudmila [28]

Answer:

Dr Dividends payable ($2*42000) $84000

Cr Cash                                                          $84000

Explanation:

Initially,on July 15 2017, the necessary entries would be to debit retained earnings and credit dividends payable with $84000 to show that the company owes the shareholders dividends.

On the payment date, the entries would to debit dividends payable and to record outflow of cash used in making the dividends payment,hence cash or bank account is credited as a decrease in cash and corresponding entry posted to dividends payable.

3 0
3 years ago
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