Answer:
Part a
Debit : Accounts Receivable $18,000
Debit : Cost of Sales $10,800
Credit : Sales Revenue $18,000
Credit : Inventory $10,800
Part b
Debit : Cash $16,200
Debit : Discount allowed $1,800
Credit : Accounts Receivable $18,000
Part c
Debit : Accounts Receivable $600
Credit : Cash $600
Explanation:
The perpetual method calculates the cost of sales for each transaction made.
See the journals prepared as above
Answer:
acquisition
Explanation:
Since in the question it is mentioned that IBM buy MRO software Inc for $740 million where the MRO is a niche provider that help the customers. While on the other hand the IBM plans to fold MRO into the unit of software
So, this is an example of the acquisition as IBM buy the MRO software
hence, the same is to be considered
Answer:
false cause people they alr on the stock market
Answer with its Explanation:
Step 1:
First of all record a loan of $3 million loan:
Dr Bank $3,000,000
Cr Loan $3,000,000
Step 2:
Finance charge will be 3% on this loan amount:
Dr Finance Charge $3million *3% = $90,000
Cr Bank $90,000
Step 3:
The interest on the note is 7% which is $70,000. So the journal entry would be:
Dr Interest Expense $70,000
Cr Interest payable $70,0000
Answer:
16.96%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5.8% + 1.8 × (12% - 5.8%)
= 5.8% + 1.8 × 6.2%
= 5.8% + 11.16%
= 16.96%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
