Yes, if it’s aceritified information .
People will seek to keep goods to avoid the potential for rising in price
Answer:
Buy ABC Puts
Explanation:
Based on the information provided within the question it can be said that the best recommendation to the client is to Buy ABC Puts. This is mainly due to the fact that the client specifically stated that he does not want to lose more than this investment. Therefore Puts are the best option since they are purchased as a speculation on a market price decline, and the customer can only lose the premium paid if the market does the opposite and ends up rising. While other options like shorting or selling can lead to unlimited loss potential.
Answer:
c. Net income will be overstated for the current year.
Explanation:
Depreciation is defined as the reduction in the value of an asset over the period of it's useful life.
The deductions are calculated and taken out of the asset value on the balance sheet.
The adjusting entry for depreciation at the end of year is a debit to Depreciation Expense and a credit to Accumulated depreciation.
If this entry is no passed it means that Depreciation Expense is not recognised for that year.
Net income will be overstated because generally expenses will be understated.
<span>The two additional pieces of information required to conclude that the standard of living increased by 4% for the typical person is REAL GDP for 2004 and the GDP deflator value for 2003. We are given nominal gdp at 4% increase which we can state as 1.04. If we are given real gdp or real gdp growth we can then derive the GDP deflator value for 2004 as follows:
2004 GDP deflator = Nominal GDP 2004/ Real GDP 2004.
Now that we have the 2004 GDP deflator, we can compare this to the 2003 GDP deflator which is the second piece of info we need to calculate the Consumer Price Index or CPI. Calculated as follows:
CPI = GDP deflator 2004 / GDP deflator 2003.
The CPI value calculated above will give you year over year inflation from year end 2003 to year end 2004. We can then concluded the change in standard of living for the typical person which is simply the increase in Nominal GDP less inflation which is real GDP growth or SOL (Standard of living growth).
Nominal GDP increase 2004 - Inflation = SOL increase.
4% - 2004 inflation = change in SOL.</span>
Answer:
The Journal entries are as follows:
1. Issuance of note
:
Cash A/c Dr. $51,000
To Note payable $51,000
(To issuance of note)
2. Adjustment for interest
:
Interest expense ($51,000 × 6% × 2/12) A/c Dr. $510
To Interest payable A/c $510
(To record the adjustment for interest)
3. Repayment of note
:
Note payable A/c Dr. $51,000
Interest payable A/c Dr. $510
Interest expense ($51,000 × 6% × 1/12) A/c Dr. $255
To cash A/c $51,765
(To record the repayment of the note at maturity)