Burrows' journal entry to record this transaction will include a debit to Cash.
<h3>Journal entry:</h3>
Based on the information given if Burrows borrowed the amount of $100,000 by signing a formal agreement to repay the bank the appropriate journal entry to record this transaction will include:
Burrows journal entry
Debit Cash $100,000
Credit Notes payable $100,000
(To record notes payable)
Inconclusion Burrows' journal entry to record this transaction will include a debit to Cash.
Learn more about journal entry here:brainly.com/question/14279491
If was you I would do something like Monopoly
Answer:
B) add deposits, subtract withdrawals and fees
Explanation:
A checking account is a deposit and saving account held in a financial institution, mostly a bank. The user or owner of the checking account is allowed to deposit and withdraw money as frequently as they deem necessary without incurring access fees.
Money held in a checking account is accessible using different ways, including debit cards, ATMs, and over the counter. When reconciling a checking account, one needs to subtract the sum of "money out" from "money in. "
"Money in" comprises mostly of deposits. "Money out" is the total of withdraws plus other bank charges levied to the account.
Answer:
A.) Medium of exchange - Here money is used for doing transaction and therefore, this example is under the medium of exchange.
B.) Store of value - Here, a person store or deposits his money into a bank and therefore, this shows the store of value characteristic of money.
C.) Medium of exchange - Here, one of my friend utilize money for helping me mowing lawns which shows that money is used as a medium of exchange.
D.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his net earnings for the year on the tax return in terms of money.
E.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his new lawn mower value.
Answer:
Spanolia LLC
The after-tax cost of debt is:
= 7.20%.
Explanation:
a) Data and Calculations:
Coupon interest rate of bonds = 12%
Maturity period = 20 years
Selling price = $1,000
Firm's marginal tax rate = 40%
After-tax cost of debt = Coupon interest rate * (1 - tax rate)
= 12% * (1 - 0.4)
= 12% * 0.6
= 7.20%
b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate. The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.
