1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Sheridan Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
il63 [147K]

Answer:

Closing inventory - $10,160

Costs of goods sold - $9,600

Explanation:

Under the LIFO Method, the cost of good sold equals to

= April 23 units × cost per unit + Remaining units × cost per unit

= 300 units × $22 + 150 units × $20

= $6,600 + $3,000

= $9,600

Since the firm has sold 450 units, so out of which 300 units sold at a price of $22 and the remaining 150 units sold at a price of $20

The ending inventory equals to

= Remaining units × cost per unit + April 1 × cost per unit

= 270 units × $20 + 280 units × $17

= $5,400 + $4,760

= $10,160

Since on April 23, the 420 units were purchase, out of which 150 units are transferred to the cost of good sold and the remaining units 270 units at $20 is transferred to the ending inventory

8 0
2 years ago
Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating an
alexandr402 [8]

Answer:

100%

Explanation:

Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management  has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE  will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now  100%

8 0
2 years ago
John Inc. is a manufacturing business. For a given accounting period, the business’s total revenue amounted to $75,000, while it
maksim [4K]

Answer:

John Inc.'s return on equity for this accounting period is:

B.

26.66 percent

Explanation:

Return or equity is a ratio used to calculate the efficiency of a certain business. It is calculated by dividing the net income on the stockholders' equity. Therefore, in our case, we translate this into 40 000 dollars divided into 150 000. Giving us a  result of .26 %. Thus, the correct option is the B. option.

8 0
3 years ago
The preferred method for situations involving strategic decision making, projects with a high degree of
Nataly_w [17]
I Found the answer on internet.

The preferred method for situations involving strategic decision making, projects with a high degree of UNCERTAINTY AND PROJECTS WITH AN UNSTOPPABLE SCOPE IS THE TOP-DOWN APPROACH. TOP DOWN APPROACH IS USED TO ESTIMATE PROJECT TIME AND COSTS.
5 0
3 years ago
savings account a and savings account B both offer aprs of 11% but savings account A compounds intrest quarterly while Savings A
Sever21 [200]

The answer is savings account A.

Since savings account A compounds the interest quarterly it adds interest to the account every quarter. This makes it a more profitable account than one that compounds the interest semiannually. The reason is that the bank is adding interest more frequently, so you are earning interest on the interest that the bank has already paid you.

3 0
3 years ago
Read 2 more answers
Other questions:
  • When the lorillard tobacco company places ads discouraging teenagers from smoking, they are using which type of institutional ad
    6·1 answer
  • Welfare is a general term for economic and social assistance programs.
    13·1 answer
  • The money supply, m, is the total value of all the cash and checking account balances in an economy. it is determined by the val
    5·1 answer
  • I have 9 cowry shells. If a dozen eggs (12 eggs) cost 2 cowry shells, how many dozens can I purchase?
    5·1 answer
  • Driving consists of a ______________ process that is used hundreds of times per mile traveled
    12·1 answer
  • DeVonda owns a music store. One night, vandals broke her store's front window. DeVonda called the police, and the police investi
    14·1 answer
  • An example of a foundational, career exploration, and planning Supervised Agricultural Experience activity is: *
    5·1 answer
  • The marginal tax rate for a lump-sum tax a. is always positive. b. is zero. c. can take on any value but must be greater than th
    9·1 answer
  • An investment offers $6,400 per year for 15 years, with the first payment occurring one year from now. If the required return is
    11·1 answer
  • A project that costs $25,000 today will generate cash flows of $8,600 per year for seven years. What is the project's payback pe
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!