Answer:
1 Cash 11,190,000
Discount on Note Payable 810,000
Note Payable 12,000,000
2- Interest Expense 810,000
Discount on Note Payable 810,000
3- Note Payable 12,000,000
Cash 12,000,000
Explanation:
In order to pass the Journal entry for issuance of Note Payable. First we need to calculate the Discount on issue of Bond Payable. The discount on note payable is calculated using the 12,000,000 x 9% x 9/12 = 810,000. In case of note payable is discount is interest expense for issuer hence on due corporation will pay full value of note to purchaser of note.
<span>(10,287.56 - 10,005.23) / 10,287.56 =
(282.33) / 10,287.56 = 0.0274
0.0274/100 = 2.74%
</span><span>At the beginning of the day, the dow jones index was at $10,287.56. at the end of the day, the dow jones index was at $10,005.23. </span>The rate of change of the dow jones on this particular day is 2.74%
Answer:
The highest net loss of $1,562.50 (i.e. – $1,562.50)
Explanation:
This can be calculated using the following equation:
Highest net profit possible = British pounds put option price per unit × Units of the pound option
= $0.05 x 31,250
Highest net profit possible = $1,562.50
However, based on the information provided in the question, the option will not be exercised and this will result into the highest net loss of $1,562.50 (i.e. – $1,562.50).
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
