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lara31 [8.8K]
3 years ago
14

Kohl Company lent $49,587 to Hemingway, Inc, accepting Hemingway's 2-year, $60,000, zero-interest-bearing note. The implied inte

rest rate is 10%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $60,000 at maturity.
Business
1 answer:
Nostrana [21]3 years ago
3 0

Answer:

Date     Account Titles                            Debit         Credit

            Notes Receivable                      $60,000

                   Discount on Notes Receivable             $10,413  

                   Cash                                                        $49,587  

             Discount on Notes Receivable  $4,959

                    Interest Revenue                                    $4,959  

             Discount on Notes Receivable $5,454

             ($49587+$4959)*10%  

                     Interest Revenue                                    $5,454

              Cash                                           $60,000

                     Notes Receivable                                   $60,000

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Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institu
Sergio [31]

Answer:

1. Commercial banks

2. Life insurance companies

3.  Mutual funds

Explanation:

commercial banks

The commercial bank is a financial institution that accepts deposits and offer other services such as giving loans and other basic financial services to both individuals and organisations.  

Life insurance companies

The life insurance companies are financial institutions that provide lump sums otherwise known as death benefits to beneficiaries  of their policy holders upon their demise, provided that premium is paid on regular basis.

Mutual fund

A Mutual Fund is an investment vehicle made up of a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund's capital and attempt to produce capital gains and income for the investors.  

One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.​

4 0
3 years ago
The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would
aalyn [17]

Answer:

The right answer is option (A).

Explanation:

According to the scenario, given data is :

Time required for one unit = 12 Min

Payment for job =  $12.75 / Hour

So, payment for job per minute = $12.75 / 60 = $0.2125 / minute

Hence, Rate per piece = rate/minute × time required for one unit

= $0.2125 × 12

= $2.55

Hence the most appropriate answer is option (A).

7 0
3 years ago
You recently sold 100 shares of Microsoft stock to your brother at a family reunion. At the reunion your brother gave you a chec
gregori [183]

Answer:

d. This is an example of a direct transfer of capital.

Explanation:

Direct transfer of stocks or securities refers a to situation whereby a seller of securities or stocks sell them to the buyer direct without involving any financial institution. Under this, seller will directly deliver the security certificate to the buyer who will in turn pay the seller in cash or by check immediately.

Therefore, collecting check from your brother for the Microsoft stock and giving your brother the stock certificate is an example of a direct transfer of capital.

3 0
3 years ago
What are the implied warranties under the Uniform Commercial Code?
lapo4ka [179]
In particular, Article 2 of the Uniform Commercial Code creates warranties of merchantability, fitness for a particular purpose, and non-infringement in contracts for the sale of goods. [1] These implied warranties significantly expand the seller's exposure for potential liabilities to the buyer.
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3 years ago
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d1i1m1o1n [39]

Answer:

1. Supply will decrease

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Due to the basic economic principle that when supply superceeds the demand for goods and services, the prices of such goods and services fall. As a result of this, and an expected increase in future prices, the supply of coffee beans by coffee merchants to the markets will decrease.

This is because the merchants want to receive higher profits and to do so, they will withhold supply to sell in the next six months when the price is higher.

6 0
3 years ago
Read 2 more answers
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