Answer:
The correct option is C.
Cash A/c Dr $300,000
To Notes Payable $300,000
(Being notes payable issued)
Explanation:
As brick company has sign a $300,000 note which consist 7% interest rate and the duration of note is 9 month on January 1
The question has asked the journal entry on January 1 date.
So, the journal entry is
Cash A/c Dr $300,000
To Notes Payable $300,000
(Being notes payable issued)
The interest part should be ignored because in the question they asked the journal entry of January 1 not in the end of the month. According to the date of asking the journal entry, the amount is to be calculated. Thus, interest should not be considered.
Hence, the correct option is C.
Cash A/c Dr $300,000
To Notes Payable $300,000
(Being notes payable issued)
D)
Market equilibrium occurs when supply = demand
Answer:
The intrinsic value of A -$44.57 is higher than that of B- $ 29.71
Explanation:
<em>The intrinsic value is the present value of he expected future dividend discounted at he required rate of return.</em>
<em>So, we would work out the intrinsic value of the two stocks using the the formula below:</em>
Intrinsic value = D× (1+r)/(k-g)
Intrinsic value of stock A
D-3, r-11%, g-4%
= 3 ×(1.04)/(0.11-0.04)
=$44.57
Intrinsic value of stock B
D-2, r-11%, g-4%
= 2 ×(1.04)/(0.11-0.04)
= $29.71
Answer: a. Gary recognizes a $1,000 LTCG
Explanation:
Long Term Capital Gain is calculated by the formula:
= Distribution from company - Basis in stock - Ordinary income earned during the year
= 16,000 - 4,000 - 11,000
= $1,000
First statement is therefore correct that Gary would recognize an LTCG of $1,000.
Answer:
These answer choices are correct:
a) Different companies use different charts of accounts based on individual company need.
The chart of accounts is the list of all the accounts that a company uses over a period of time. Because each company has a different economic and operating activity, each company's chart of accounts is unique.
b) The chart of accounts contains the balance of all of the accounts in a ledger
c) The chart of accounts should be ordered in a logical sequence based on type of account
The chart of accounts includes all the acounts of the ledger, and it also is organized following a logical sequence. Assets, Liabilities, Stockholders' Equity, and their corresponding subdivisions, is usually the order of organization.
