Answer:
Interest Receivable 6,490 debit
Interest Revenue 6,490 credit
(To record interest revenue from Stellar Enterprises loan)
Explanation:
The banks accounting will reflect the accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.
It will recognize the interest revenue from the accounting period
and will declare the interest receivable for the same amount.
<u>From this we can deduct:</u>
the payable from one entity is a receivable for another entry.
the interest expense from one firm will be interest revenue for another.
Answer:
$0.72
Explanation:
The computation of the amount of the last dividend paid is shown below:
Market price of a stock = Last dividend × (1 + growth rate) ÷ Required rate of return - growth rate
$12.36 = Last dividend × ( 1 + 0.03) ÷ 0.09 - 0.03
$12.36 = Last dividend × (1.03) ÷ 0.06
$12.36 × 0.06 = 1.03 × last dividend
$0.7416 = 1.03 × last dividend
So,
last dividend is
= $0.7416 ÷ 1.03
= $0.72
Answer:
the required rate of return on the stock is 12.52%
Explanation:
The computation of the required rate of return on the stock is shown below:
= (Next year Dividend ÷ current stock price ) + growth rate
= ($1.68 ÷ $ 22.35 ) + 0.05
= 0.075 + 0.05
= 12.52%
Hence, the required rate of return on the stock is 12.52%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Correct option is (d)
Explanation:
An account is termed uncollectible if they are not expected to be paid. There are two methods to write off these accounts:
1. Direct write off method: In this, the account recognized at uncollectible is directly charged to profit and loss account as an expense.
2. Allowance method: Under this method, a provision for doubtful debt is created where anticipated bad debts are charged. When an account needs to be written off, doubtful debt is debited and accounts receivables are credited.
