Answer:
The correct answer is letter "D": optimal currency area.
Explanation:
An Optimal Currency Area or OCA refers to a region that allows the establishment of a common currency for different countries that have similar economic patterns allowing them to set similar macroeconomic policies. The objective is the integration of those economies promoting growth and currency stability.
However, <em>economic hardship in Greece put block currencies such as the euro at risk since it unbalanced the Euro weight in western Europe. The relatively recent United Kingdom auto exclusion of the European Union (EU) through the "Brexit" is also a sign that the European zone has many countries looking for different interests.</em>
Answer:
Journal Entry
March 1
Dr. Cash $4,550,000
Dr. Discount on Note Payable $450,000
Cr. Note payable $5,000,000
December 1
Dr. Interest Expense $450,000
Cr. Discount on Note Payable $450,000
Dr. Note payable $5,000,000
Cr. Cash $5,000,000
Explanation:
Note payable is document which is payable after a specific period of time.
Note Payable is recorded at the present value of the note face value. We need to discount the face value of the note first.
Interest on the bond = $5,000,000 x 12% x 9/12 = $450,000
On December 31 Interest expense will be recorded and Payment of Note is made.
Answer:
debit cash $250,000; credit notes payable $250,000
Explanation:
July 1, journal entries should be:
- Dr Cash account 250,000
- Cr Notes Payable account 250,000
Since cash is an asset account and it increases (the company receives money), it should be debited.
Since notes payable is a liability account and it increases, it should be credited.
I am pretty sure it is seattle
