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Answer:
A.
Dr merchandise inventory 47,040
Cr Account payable 47,040
B.
Dr Account payable 7,350
Cr merchandise inventory 7,350
C.
Dr Account payable 39,690
Cr Cash 39,690
D.
Dr Account payable 39,690
Dr Purchase discount 810
Cr cash 40,500
Explanation:
Stylon Co. Journal entry
A.
Dr merchandise inventory 47,040
Cr Account payable 47,040
(48,000-(48,000×2%)
B.
Dr Account payable 7,350
Cr merchandise inventory 7,350
(7500-(7500×2%)
C.
Dr Account payable 39,690
Cr Cash 39,690
(47,040-7,350)
D.
Dr Account payable 39,690
Dr Purchase discount 810
(48000-7500)×2%
Cr cash 40,500
Option A. Jessie has the idea for a new phone app so he spend his money to set up a business
The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.
<h3>What do you mean by Duration Gap?</h3>
Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.
Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.
Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.
Learn more about Duration gap here:
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Answer:
Yes Yes
Explanation:
The fair value of each asset is less than book value implying that both firms have a loss. Losses are recognized in full regardless of whether there is commercial exchange.