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lesantik [10]
3 years ago
6

Branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance a

t a 9% discount rate. Prepare the journal entry for the issuance of the commercial paper and its repayment at maturity.
Business
1 answer:
siniylev [52]3 years ago
8 0

Answer:

1                   Cash                                                     11,190,000

                      Discount on Note Payable                810,000

                       Note Payable                                          12,000,000

2-                 Interest Expense                                   810,000

                          Discount on Note Payable                    810,000

3-                  Note Payable                                       12,000,000

                           Cash                                                     12,000,000

Explanation:

In order to pass the Journal entry for issuance of Note Payable. First we need to calculate the Discount on issue of Bond Payable. The discount on note payable is calculated using the 12,000,000 x 9% x 9/12 = 810,000. In case of note payable is discount is interest expense for issuer hence on due corporation will pay full value of note to purchaser of note.

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The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives eac
icang [17]

Answer:

Thailand

Ireland

c

Explanation:

Thailand  has the highest annual growth rate so it is fastest economy to grow in rela income per person form 1960 to 2010 that is 4.91%

Irleand has the highest real income per person in year 2010 that is $41,558

Ireland, Pakistan and Thailand had lower real income per person than Finland in 1960 but only Ireland had higher real income per person than Finland in 2010.

8 0
3 years ago
An important cloud design philosophy that defines all interactions among computing devices as services in a formal standardized
Fynjy0 [20]

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3 0
3 years ago
The financial statements of the larson company report net sales of $1,000,000 and accounts receivable of $80,000 and $60,000 at
stepan [7]
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4 0
3 years ago
An increase in the expected rate of inflation will:______a. the real rate of interest.b. the nominal rate of interest.c. both th
liubo4ka [24]

Answer:

B

Explanation:

Inflation is a persistent rise in general price levels

Real rate of interest is interest rate adjusted for inflation.

Nominal rate of interest is real interest rate added with the real rate of interest

Nominal Interest Rate = Real rate of interest + inflation rate

If inflation is expected, it would be incorporated into the nominal rate of interest.

For example, if the nominal rate of interest is 9% and expected inflation is 2%. Nominal interest rate would become 11% (9% + 2%)

6 0
3 years ago
Use the following scenario to answer the next eight questions: An economy has two workers, Smith and Ricardo. Each day they work
olya-2409 [2.1K]

Answer: 0.25 computer

Explanation:

Given that,

Smith can produce = 4 computers or 16 smartphones

Ricardo can produce = 6 computers or 12 smartphones

The opportunity cost for smith to produce one smartphone is as follows:

= \frac{Total\ computers\ can\ be\ produced}{Total\ smartphones\ can\ be\ produced}

= \frac{4}{16}

= 0.25

Therefore, 0.25 computer have to be foregone to produce one smartphone.

4 0
3 years ago
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