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jasenka [17]
3 years ago
13

Herrindale Mart borrows $420,000 on July 1 with a short-term loan that has an annual interest rate of 5% which is payable on the

first day of each subsequent quarter. What will Herrindale Mart need to accrue on August 31, assuming that no accrual has yet been made
Business
1 answer:
kirill [66]3 years ago
3 0

Answer:

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Explanation:

The journal entry to record the loan:

July 1 , 202x

Dr Cash 420,000

    Cr Notes payable 420,000

The journal entry to record accrued interest on the loan:

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Interest expense = $420,000 x 5% x 2/12 = $1,750

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Bridgette wants to start a corporation. She is looking for a state in which to incorporate. If she incorporates in the state wit
VladimirAG [237]

<u>Full question:</u>

Bridgette wants to start a corporation. She is looking for a state in which to incorporate. If she incorporates in the state with laws that favor corporate management, where many corporations have incorporated, she will select:

a. Florida.

b. Delaware.

c. Michigan.

d. Colorado.

<u>Answer:</u>

If she incorporates in the state with laws that favor corporate management, where many corporations have incorporated, she will select:  Delaware

<u>Explanation:</u>

When deciding to begin a business one is expected to accept a pattern of a business unit. Delaware is where several businesses have consolidated. The state of Delaware favors the administration of companies because of their favorable tax rules, as a consequence dragging many businesses to consolidate there. In this state, one can operate a business and experience tax benefits even he or she does not live there.

The state also contributes to powerful business privacy.  Unlike other states, business issues are controlled by specific judges and not judges as done in other states. The state is also favored for its adjustable rules on corporation management as the council and representatives may wish not to live in the state.

7 0
4 years ago
How does an investor receive a return from a zero or very low coupon​ bond? ​(Select the best choice​ below.)
Veronika [31]

Answer:

A. From the appreciation of the bonds

Explanation:

Zero or very low coupon bond do not pay much (coupon) in their life (so C eliminated). They are sold at a deep discount to investor. As time pass, the value of the bond usually increases to approach face value (hence A).

Normally investor still have to pay for the imputed ("phantom") interest that comes from their real return (B eliminated)

If interest rate increases, the bond will decreases in value to create the required return the new buyer when they eventually sell it (D eliminated)

6 0
3 years ago
Riverwalk Corporation is liquidated, with Juan receiving $5,000 in money, other property having a $6,000 FMV, and a $1,000 mortg
7nadin3 [17]

Answer:

The correct option is B,$2000

Explanation:

The gain on the cash and property received by Juan can be computed thus:

Cash received                      $5,000

Property less mortgage:

Property value  $6000

Mortgage          ($1000)         $5000

Total                                        $10,000

less stock basis                       ($8,000)

gain on stock                           $2,000

Option A is since the value of cash and property received is not $8,000 which gives a no gain  no loss outcome.

Option C is wrong since the property mortgage of $1000 must be deducted from the property before computing the gain or loss.

Option D is obviously wrong as the $11,000 is just the summation of property value of $6000 without considering mortgage and the cash received.

5 0
4 years ago
Read 2 more answers
Someone who is extremely dissatisfied with the direction of their current employer and has their own great ideas, an independent
Ne4ueva [31]

Group of answer choices.

a. Tough it out and try to adjust to their workplace

b. Quit their jobs and start their own business

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Answer:

b. Quit their jobs and start their own business

Explanation:

An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.

Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).

Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.

Generally, an employee who is extremely dissatisfied with the direction of their current employer and has his or her own great ideas, aspirations, an independent streak (willingness to work for oneself rather than serve others), and a great work ethic might decide to quit their jobs and start their own business such as an entrepreneur.

An entrepreneur refers to an individual who sees a need or discovers a problem in a society and innovatively proffers a solution using brilliant ideas or entrepreneurial thinking.

The following are four characteristics of an entrepreneur;

1. Innovative: it can be defined as a quality possessed by an individual or group of people such as an entrepreneur and typically involves the process of improving on an existing product or ideas.

2. Passionate: believing in a course and one's ability to achieve much more at a business.

3. Risk-Taker: he or she is confident enough to venture into risky businesses with the hope of an expected success.

4. Self-Confident: he or she is bold and believes in his or her abilities to excel.

3 0
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n the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels. a. l
pychu [463]

In the short run, a perfectly competitive firm will always shut down if total revenue is less than variable cost at all positive output levels.

Explanation:

In the perfect competitive market, firms face the critical situation of the shut down when the firms unable to control the variable cost which includes labor costs, production, and other utility costs. The level of obtaining the low profit can be caused due to the following factors like ineffective management decisions, low sales volumes, market risks and the lack of cordial relations with other countries with respect to the trading of import and export of all goods.

When the operational expenses of the sunk cost (nonrecoverable cost) and the overhead cost in the short-run period are not able to control the efficiency of bridging the gap between the profit and the sales margin in all the conditions of all positive output levels.  

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3 years ago
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