Answer and Explanation:
The journal entries are shown below:
On Feb 15
Purchases $800,000
To Accounts payable $800,000
(Being the purchase of inventory on credit is recorded)
On Mar 31
Accounts payable $800000
To Notes payable $800000
(Being the issuance of note is recorded)
On Sept 30
Notes payable $800,000
Interest expense $40,000
To Cash $840,000
(Being the payment of note and interest is recorded)
The interest expense is computed below:
= $800,000 × 10% × 6 months ÷ 12 months
= $40,000
The six months is calculated from Mar 31 to Sep 30
Only these entries are passed
No because it is to expensive and the modern outfits are changing relatively quickly
The Discount rate reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well as the risks associated with not receiving returns until a later time.
Explanation:
The discount rate relates to the interest rates on loans that the Federal Reserve Bank borrows from central banks and financial institutions through the commercial bank loan mechanism.
The rate of barriers, financial assets and discount rates are all equal. The next best potential investment option with a comparable risk profile wins the rate of returns. The word ' opportunity expense' is a clear and generic concept that can be used any day of the day.
