Loan investment account.. can be either side of the account depending on how the accountant set up the system
<em />It is true that arbitration places a dispute before a third party for a binding settlement.
Answer:
The journal entry should be:
Dr Investment in Leghorn Corporation XX
Cr Accounts receivable XX
Explanation:
Foghorn Company must record the noncash payment as an asset which should be equal to the amount of money that it generally would have collected from the services provided. Since the payment is done through stocks, it must record that collection as an investing account.
Since transferring stocks usually takes a couple of days at least, the original journal entry should have recorded a debit to accounts receivable and a credit to service revenue.
Answer:
The journal entry to be recorded for the payment of the note on date of maturity is shown below:
Explanation:
The journal entry to be recorded for the payment of the note on date of maturity is as follows:
Notes Payable A/c..........................Dr $9,000
Interest expense A/c......................Dr $148
Cash A/c..........................................Cr $9,148
Being payment of the note payable is reported on the maturity date
As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.
Working Note:
Interest expense = $9,000 × 10% × 60/ 365
Interest expense = $148
Answer:
$56.89
Explanation:
The computation of the current price of this preferred stock is shown below:
= Annual dividend ÷ required rate of return
where,
Annual dividend equal to
= Quarterly dividend × number of quarters in a year
= $1.65 × 4 quarters
= $6.6
And, the required rate of return is 11.6%
Now put these values to the above formula
So, the price would equal to
= $6.6 ÷ 11.6%
= $56.89
