Answer: $197,600
Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:
200,000 euros @ .988
= $197,600
on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000
Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.
the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.
Answer and Explanation:
The Journal entry is shown below:-
a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)
To Allowance for Doubtful Accounts $36,800
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)
To Allowance for Doubtful Accounts $40,730
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
I'm guessing this is True or False
If so, the answer is False.
Answer:
weighted average rate: 11.14%
capitalize interest (avoidable interest) 421,270.24 dollars
Explanation:
construction related loan:
4,400,000 12% = 528,000
general use:
3,080,000 10% = 308,000
<u>2,200,000</u> 11% = <u> 242,000</u>
9,680,000 1,078,000
weighted-average rate: 1,078,000 / 9,680,000 = 0.111363636 = 11.14%
capitalize interest:
weighted-average amount of accumulated expenditures x w/a rate:
3,781,600 x 11.14% = 421,270.24
Answer:
(1.32%)
Explanation:
The computation of the abnormal change in Ford’s stock price is shown below:
Given that
rF = 0.1% + 1.1rM
If the market index rises by 10.2%
So, now the equation is
= 0.1% + 1.1 × 10.2%
= 0.1% + 11.22%
= 11.32%
And, the stock price rises by 10%
So, now the abnormal change in Ford stock price is
= 10% - 11.32%
= (1.32%)
