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Stella [2.4K]
3 years ago
13

On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Co

mpany. What amount of interest expense is accrued at December 31 on the note
Business
1 answer:
Lera25 [3.4K]3 years ago
8 0

Answer:

Interest expense $80

Explanation:

the journal entry to record the issuance of the note:

December 1, 202x, note issued in replacement of account payable

Dr Accounts payable 24,000

    Cr Notes payable 24,000

the journal entry to record accrued interests payable is:

December 31, 202x, accrued interests payable

Dr Interest expense 80

    Cr Interests payable 80

Interest expense = $24,000 x 4% x 1/12 = $80

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On May 1, 2019, Joe Hill is considering one of the following newly issued 10-year AAA corporate bonds. Description Coupon Price
wolverine [178]

When interest rates are expected to rise, then Joe Hill should D. prefer the Asbury bond to the Wildwood bond.

<h3>What is a bond?</h3>

A bond simply means a form of security that is used in mutual funds and private investing.

In this case, when interest rates are expected to rise, then Joe Hill should prefer the Asbury bond to the Wildwood bond. This is important to prevent loss.

Learn more about bond on:

brainly.com/question/25596583

8 0
2 years ago
A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $5,200,000
Diano4ka-milaya [45]

Answer:

Total debt = $3,900,000

Explanation:

Total Assets = $5,200,000

Debt Ratio    = 75%

Debt              = 75% x $5,200,000

                     =$3,900,000

Hence, the 25% account for equity finance $1,300,000

8 0
4 years ago
Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 9% a year for the
Butoxors [25]

Answer:

D1 = $4.085

D2 = $4.46

D3 = $4.86

D4 = $5.01

D5 = $5.16

Explanation:

As per the data given in the question,

DO = $3.75

Dividend expected to grow = 9%

Dividend grow later = 4%

D1 = DO(1+ Dividend1) = $3.75(1+9%)  

=$3.75(1.09)

=$4.085

D2 = DO(1+ Dividend1 )( 1 + Dividend2)

= $3.75(1+9%)(1+9%)

= $4.46

D3 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)

= $3.75(1+9%)(1+9%)(1+9%)

= $4.86

D4 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)

= $3.75(1+9%)(1+9%)(1+9%)(1+3%)

= $5.01

D5 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)(1+Dividend later)

= $3.75(1+9%)(1+9%)(1+9%)(1+3%)(1+3%)

= $5.16

5 0
4 years ago
If the government’s budget deficit increases while the economy is producing substantially less then potential GDP and expansiona
Serhud [2]

Answer:

A) higher interest rates ; largely offset by the lower interest rates

Explanation:

If the government carries on an expansionary monetary policy, it will  lower interest rates and increase the money supply in an attempt to increase aggregate demand. If at the same time it increases the interest rate it will pay for borrowing money (e.g. increase treasury bills' interest rates), that would make no sense since one policy would offset the other.

A government cannot increase the money supply and then increase the interest rates on treasury bills since that would lower the money supply again.

7 0
3 years ago
On the basis of the three Individual demand schedules below, and assuming these three people are the only ones in the society, d
Oduvanchick [21]

Answer:

Demand

Public Good

Price Qd

42.....1

36....2

30....3

24....4

18.....5

12.....6

6.....7

2....8

Explanation:

6 0
3 years ago
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