Answer:
Out the money.
Explanation:
A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.
An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.
A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.
<em>In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.</em>
Answer:
a. Accounts Payable <em>Liability</em>
b. Cash <em>Asset</em>
c. Common Stock <em>Equity</em>
d. Accounts Receivable <em>Asset</em>
e. Rent Expense <em>Equity</em>
f. Service Revenue <em>Equity</em>
g. Office Supplies Asset
h. Dividends <em>Equity</em>
i. Land <em>Assets</em>
j. Salaries Expense <em>Equity</em>
Explanation:
<em><u></u></em>
<em><u>Assets:</u></em>
The assets will be the property, plant and equipemnt owned by the company or the right or claim it has on third party to provide cash in favor of the company (accounts receivables) or services ( prepaid insurance)
<em><u>Liabilities:</u></em>
Will be debt or obligation to do taken from the company in exchange of soemthing
<em><u>Equity:</u></em>
The equity will represent the investment of the owner plus the accumualted earning thus, the revenus and income have impact on equity.
,Answer:
$23,910
Explanation:
The computation of the amount of equity income should Akron report for 2018 is given below:
But before that the amortization is
Purchase price $97,500
carrying value ($390,000 ×5%) $19,500
Total fair value $117,000
Less: net book value ($287,000 × 0.30) $86,100
Franchise agreement $30,900
Divided by Remaining life 10
annual amortization $3,090
Now the amount of equity income is
= $90,000 ×30% - $3,090
= $23,910
Answer: Specialty Product
Explanation: Blue bell cookie represents a typical example of a specialty product to Gwen, because the cookie bears a special place in her heart.
A specialty product is a product that is very special to a consumer and the consumer can go to any length to purchase them.
Answer:
Cash Sales Transaction
Journal Entry
Dr. Cash 100,000
Cr. Sales 100,000
Cash received and sales has been recorded due to the nature of Cash and Income, Cash and Sales is entered as Debit and credit respectively.
* For Journal posting MS excel file is attached which has T account with above transaction posted in it.
Explanation:
