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4vir4ik [10]
3 years ago
5

Global​ Enterprises, Inc. signed a oneminusyear $ 42 comma 000 note payable at 9​% interest on April​ 1, 2018. If Global only ad

justs its accounts once a year at yearminus​end, how much interest expense was accrued on December​ 31, 2018?​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​ number.)
Business
1 answer:
Natasha2012 [34]3 years ago
3 0

Answer:

the journal entry will be:

interest expense 2,835 debit

  interest payable      2,835 credit

--to record accrued interest --

Explanation:

April 1st,2018 42,000 promissory note

<u>accrued interest</u> from April 1st to December 31th (9-months)

principal x rate x time

we moth express rate and time on the same metric.

because the rate is annual; time should be expressed at portion of year 9/12

42,000 x 9% (9/12) = 2,835

the journal entry will be:

interest expense 2,835 debit

  interest payable      2,835 credit

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D. Accounts receivable
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2 years ago
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.
natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock Price =\frac{D1}{r-g}

If r is made subject of formula;  r=\frac{D1}{Price}+g = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%                                      

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2= \frac{D3}{ke-g}

Price of the stock today = \frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}=109.57

Therefore dividend yield =\frac[D1}{Price} = \frac{4.2(1.2)}{109.57}=4.6%

5 0
3 years ago
The reason why reinvested earnings have a cost equal to the required rate of return is because investors expect to earn on those
KatRina [158]

Answer:

true the investors expect to earn on those funds

4 0
3 years ago
Marcus is considering which college major to choose. In taking a rational approach, Marcus should consider
harkovskaia [24]

Answer:

Science or physics.

Explanation:

You didn't give us the choices

8 0
2 years ago
A company has net credit sales of​ $1,200,000, beginning net accounts receivable of​ $290,000, and ending net accounts receivabl
7nadin3 [17]

Answer:

Days of receivable will be 75 days

Explanation:

We have given net credit sales = $1200000

Net account receivable at the beginning = $290000

And receivable at the ending = $201000

Average receivable =\frac{290000+201000}{2}=$245500

Now receivables turnover ratio =\frac{credit\ sales}{average\ receivable}=\frac{1200000}{245500}=4.888

Days of receivables = \frac{365}{4.888}=74.67=75days

8 0
3 years ago
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