The valid reason for selling the stock now is that the -Courtney is concerned that the value of the stock will decline in the near future.
Explanation:
Courtney has invested in RAD, Inc. stock nine months back .Now she is considering tax planning strategies at the end of the year and is pondering whether or not to sell her investment in the stock.
A friend has advised Courtney that she should hold the stock for at least three more months in order to have a long-term holding period. but the consideration of Courtney that the value of the stock will decline in the near future is the reasons why she was to sell the stock at the earliest despite taking her friends advice
In Accounting there are four types of costs: <span>direct, indirect, fixed, variable and operating </span>costs<span>.
</span>Direct cost is the material, labor, expense, or distribution cost required to produce the product.<span>
Fixed costs are </span>cost of building a factory, insurance and legal bills.
opposite to fixed costs, a variable cost <span>occurs when the amount used varies based on the volume of service provided.</span>
You should inquire.
If the bill is incorrect, this could be a cause of fraud or a simple calculating error. The same could apply for you wanting more information - the supplier should be able to provide you information about it.
The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is stronger in most of the time over the U.S. dollar. When the yen is stronger than the U.S. dollar, it's cheaper for Japanese customers to buy the U.S. products. This type of agreement should lead to more sales for the Ozark Bike Company which means their profits will in-turn be higher. Not only will profits rise, so will awareness of the product and help grow the Ozark Bike brand.
Answer: Debit: Interest expense $9900
Debit: Premium on bonds payable $540
Credit: Cash $10440
Explanation:
First and foremost, the cash payment will be calculated as:
= $174,000 × 12% × 6/12
= $174,000 × 0.12 × 0.5
= $10440
Interest expenses will be calculated as:
= $180000 × 11% × 6/12
= $180000 × 0.11 × 0.5
= $9900
Therefore, the journal entry to record the first interest payment would be:
Debit: Interest expense $9900
Debit: Premium on bonds payable $540
Credit: Cash $10440
