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3 years ago

When a company receives an interest-bearing note receivable, it will

Business

1 answer:

matrenka [14]3 years ago

3 0

Answer:

a. debit Notes Receivable for the face value of the note

Explanation:

The note will generate interest over time, but at the moment of receiving the note, it hasn't accrued any interest, so we have to only record for the value of the note today.

Also this note represent the right to claim cash from the person who sign the note, so it is an asset for the company.

Asset increase from debit side, so the Note Receivable will be debited.

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An ever-expanding variety of goods and services are in demand by consumers all around the world. given the importance of world t

Vlada [557]

An ever-expanding variety of goods and services are in demand by consumers all around the world. given the importance of world trade, countries are inclined to attempt to control the trade for their own benefit.

The General Agreement on Tariffs and Trade is now administered by the World Trade Organization. The International Court of Justice is composed exclusively of U.S. judges. The Dispute Settlement Body of the World Trade Organization (DSB) is a bona fide court.

International trade allows countries to expand their markets and gain access to goods and services that were not available domestically. World trade has made the market more competitive. This ultimately leads to more competitive pricing and consumers get cheaper products.

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6 0

1 year ago

The market value of Fords' equity, preferred stock, and debt are $ 7 billion, $ 2 billion, and $ 15 billion, respectively.

Stolb23 [73]

Answer:

Ford's weighted average cost of capital is 8.22 %

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.

Calculation of WACC

WACC = Cost of equity + Cost of preferred stock + Cost of debt

Capital Source Market Values Weight Cost Total Cost

equity $ 7 billion 29.17% 13.6% 3.97 %

preferred stock $ 2 billion 8.33% 12% 1.00 %

debt $ 15 billion 62.50% 5.2 % 3.25%

Total $ 24 billion 8.22 %

Cost of equity = Risk free rate + Beta × Risk Premium

= 4% + 1.2 × 8%

= 13.6%

Cost of preferred stock = Dividend/Market Price

= $ 3/ $ 25 × 100

= 12%

Cost of debt = interest × (1- tax rate)

= 8% × (1-0.35)

= 5.2 %

7 0

3 years ago

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

hjlf

Answer:

$17.97 per unit

Explanation:

Using weighted average method, Equivalent units = Units that are completed during the period + Equivalent units in process at the end of period.

Equivalent units = 8,500 + 2,000*90%

Equivalent units = 8,500 + 1,800

Equivalent units = 10,300

Cost per equivalent unit for materials = (Beginning costs + Current costs) / Equivalent units

Cost per equivalent unit for materials = ($13,000 + $172,100) / 10,300 units

Cost per equivalent unit for materials = $185,100 / 10,300 units

Cost per equivalent unit for materials = $17.97 per unit

8 0

3 years ago

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol

gizmo_the_mogwai [7]

Answer:

Eastern Data Links Corporation

Journal entries

Step 1.

Issuance for Common stock at a premium in exchange for cash

Feb 12,

Dr. Cash account with $18,000,000

Cr. $1 Ordinary share Capital Account with $2,000,000

Cr. Ordinary share premium Account with $16,000,000

(Being $18million received for 2million shares valued at $1 and sold at a premium of $9)

Step 2.

Issuance for Common stock at a premium in settlement of a liability due

Feb 13,

Dr. Accounts Payable account with $360,000

Cr. $1 Ordinary share Capital Account with $40,000

Cr. Ordinary share premium Account with $320,000

(Being $360,000 legal expense liquidation in exchange of 40,000 shares valued at $1 and sold at a premium of $9)

5 0

3 years ago

A company receives $371, of which $21 is for sales tax. the journal entry to record the sale would include a:________

Phoenix [80]

A company receives $371, of which $21 is for sales tax. the journal entry to record the sale would include a debit to Cash for $371.

Claim means a reservation against payment made or unpaid. Debit entries are typically created to the left of accounts. So, when a transaction is made in a double-entry bookkeeping system, one account is debited and the other is credited.

A direct debit is a record of money taken from a bank account. For example, when writing a check. The total debits must balance the total credits. Synonyms: Payment, Liability, Payment, Obligation Other synonyms for direct debit.

Debit is a formal bookkeeping and accounting term, derived from the Latin word debate, meaning "borrow". Charges are categorized on the positive side of balance sheet accounts and on the negative side of resulting items.

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8 0

2 years ago