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kondaur [170]
3 years ago
14

On October 1, Eder Fabrication borrowed $66 million and issued a nine-month, 8% promissory note. Interest was payable at maturit

y. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
blondinia [14]3 years ago
3 0

Answer:

Explanation:

The adjusting entries are shown below:

1. Cash A/c Dr $66,000,000

        To Short term notes payable A/c $66,000,000

(Being issue of short term note payable is recorded)

2. Interest expense A/c Dr $1,320,000

        To Interest payable A/c                    $1,320,000

(Being interest is recorded)

The interest amount is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $66,000,000 × 8% × ( 3 months ÷ 12 months)

= $1,320,000

The 3 months is calculated from October 1 to December 31

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Darden Restaurants is expected to pay annual dividends of $1.90 and $2.10 over the next two years,respectively. After that, the
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Answer:

$13.89

Explanation:

The computation of the value of stock is shown below:

Year Dividend Present value factor at 16% Present value  

1         $1.90                0.862                               $1.64

2        $2.10                 0.743                               $1.56

3        $2.30

Price $14.375             0.743                               $10.68

The price is computed below:

= $2.30 ÷ 16% = $14.375

Total present value $13.89

The present value factor is computed below:

= 1 ÷ (1 + rate) ^ years

For Year 1 = 1 ÷ 1.16^1 = 0.862

For Year 2 = 1 ÷ 1.16^2 = 0.743

7 0
3 years ago
Because it improves timeliness of supplier information and reduces both order processing and marketing costs, ________buying is
denis-greek [22]

Answer:

internet

Explanation:

Based on the information provided within the question it can be said that the type of buying being mentioned in this scenario would be internet buying. This allows organization's to easily order what they need and cut down on the amount of money that they need to spend on various other costs as well as the amount of time.

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A company with fixed costs of $10,000 per month has a target price of $165 for their sole product, a heat shield for masonry fir
Yakvenalex [24]

Answer:

b. between 70 and 80 units

Explanation:

In this question we have to compute the break even point in units which is shown below:

Break even point in units = (Fixed cost ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

So, the units would be equal to

= ($10,000) ÷ ($165 - $35)

= $10,000 ÷ $130

= 76.92 units

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3 years ago
A high level of pay relative to that of competitors can ensure that
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"The company attracts high-quality employees.
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3 years ago
The given data represent the total compensation for 10 randomly selected CEOs and their​ company's stock performance in 2009. An
jok3333 [9.3K]

Missing Question Data:

As the Question is missing relevant data, I have searched for it online and found a question similar. The data is attached in a picture file. It might be a little different from your actual question but same approach can be used to solve the question.

Answer with Explanation:

For simplicity, we denote the compensations with variable <em>x </em>and the stock return with variable <em>y.</em> Let us first find the mean and standard deviation for both compensation (x) and return (y).

Mean of Compensation (<em>x) </em> will be,

X\;=\;\frac{26.43\;+\;12.03\;+\;19.74\;+\;13.54\;+\;11.97\;+\;11.41\;+\;25.94\;+\;14.46\;+\;17.13\;+\;14.71}{10}

X\; = \;16.737

Mean of Stock Return (y) will be,

Y\;=\;\frac{5.43\;+\;30.89\;+\;31.89\;+\;80.06\;-\;8.22\;+\;2.89\;+\;4.39\;+\;10.95\;+\;4.18\;+\;11.94}{10}

Y\;=\;17.44

Standard Deviation for Compensation (x) is given by,

\sigma _{x}\;=\;\sqrt{\frac{\sum (x_{i}-X)^{2}}{N}}

\sigma _{x}\;=\;\sqrt{\frac{(26.43-16.73)^{2}+(12.03-16.73)^{2}+....+(14.71-16.73)^{2}}{10}}

\sigma _{x}\;=\;5.30

Standard Deviation for Compensation (x) is given by,

\sigma _{y}\;=\;\sqrt{\frac{\sum (y_{i}-Y)^{2}}{N}}

\sigma _{y}\;=\;\sqrt{\frac{(5.43-17.44)^{2}+(30.89-17.44)^{2}+....+(11.94-17.44)^{2}}{10}}

\sigma_{y}\;=\;23.97

To find the predicted stock return, we have to use the equation for of line of regression,

y_{required}\;-\;Y\;=\;z\;*\;\frac{\sigma _{x}}{\sigma _{y}}\;*\;(x_{required}-X)\;.........\;(1)

where,

z\; =\;Correlation\;coefficient\;=\;-0.2426\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;(given)

x_{required}\;=\;Compensation\;of\;\$15\;million\;=\;15

y_{required}\;=\;Stock\;return\;at\;x_{required}

Equation (1) will become,

y_{required}\;-\;17.44\;=\;-0.2426\;*\;\frac{5.30}{23.97}\;*\;(15\;-\;16.73)

y_{required}\;=\;-0.054*\;(-1.73)\;+\;17.44\;

y_{required}\;=\;17.533.

4 0
3 years ago
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