Answer: See explanation
Explanation:
a. Determine the due date of the note.
The due date will be gotten by calculating the date that will make 120 days starting from April 9th. This will be:
April = 30 - 9 days = 21 days
May = 31 days
June = 30 days
July = 31 days
August = 7th day.
Therefore, August 7 is the due date
b. Determine the maturity value of the note.
Amount of interest on note = 96000 x 10% x 120/360
= 96000 × 0.1 × 1/3
= $3200
Then, Maturity Value will be:
=$96000 + $3200
= $99200
c. Journalize the entry to record the receipt of the payment of the note at maturity.
7th August:
Debit: Cash = $99200
Credit: Note receivable = $96000
Credit: Interest revenue = $3200
(Note receivable realized)
Answer:
using headings
Explanation:
Headings can be used to emphasize key points in written communication such as in memos. In busy organisations where staff might not have time to read the entire text, headings can be used to indicate key points which members will easily pick up as they quickly scan through the text . Such a written communication strategy can be adopted by Daren at MalChop Inc.
Answer:
kept the same in order to achieve allocative and productive efficiency.
Explanation:
Full production means that employed resources are providing maximum satisfaction for our material wants. Full production implies two kinds of efficiency: 1. Allocative efficiency means that resources are used for producing the combination of goods and services most wanted by society
Answer:
The initial margin is $5,950
Explanation:
To calculate for the initial margin, we have to decide from two options. After making the calculations, the initial margin would be the one with a greater outcome.
Given:
Option price = $3.50
Strike price = $60
Stock price = $57
Stock price - Strike price = $60- $57 = $3
Option 1:
Option 2:
Since we got $5,950 in our first calculation, we will take that as our initial margin as it is greater than the second option. It can be provided in part with initial sum of $500 * 3 = $1,750
Answer:
End of year 3: $677.85
Explanation:
If the interest rate is annual effective:
Year 0 (now): $100
In a year from now I will have:
End of Year 1: $100*1,075= 107.5
Then I put $200 more, i will have $307.5
Begging of year 2: $307.5
In two years from now I will have:
End of year 2: $307.5*1.075= $330.56
Then I put $300 more, i will have $660.56
Begging of year 3: $660.56
In three years from now i will have:
$660.56*1,075= $677.85
End of year 3: $677.85
