Answer:
"Actions To Take"
Check my records first
Contact the bank right away
Handle the matter quickly
"Actions To Avoid"
Set the note aside and wait until later
Answer:
Notes payable; $10,000
Explanation:
Given that,
Borrowing amount = $10,000
Time period = 60 day
Interest rate = 8%
On the due date of the note, avers co. paid the amount.
Therefore, this entry would be recorded by Avers with a debit to Notes payable with an amount of $10,000.
Interest amount = $10,000 × (60 ÷ 360) × 0.08
= $10,000 × 0.17 × 0.08
= $136
(Note: Assuming 360 days in a year)
Therefore, the Journal entry is as follows:
Notes payable A/c Dr. $10,000
Interest Expense A/c Dr. $136
To cash $10,136
(To record Avers pays the amount due in full)
Answer:
Dividends = 6,000
Explanation:
Ending liabilities = Beginning liabilities - Decrease in liabilities
= $6,900 - $1,200
= $5,700
Ending net assets = Ending total assets - Ending total liability
$3,900 = Ending total assets - $5,700
Ending total assets = $3,900 + $5,700
= $9,600
Ending RE = Ending total assets - Ending liabilities
= $9,600 - $5,700
= $3,900
Dividend = Beginning RE + Net income - Ending RE
= $6,900 + $3,000 - $3,900
= $6,000
Answer:
c. $166.67 million
Explanation:
cost of expansion = new equity issued / (1 - flotation costs)
cost of expansion = $150 million / (1 - 10%) = $150 million / 90% = $166.67 million
Flotation costs increase the cost of equity, since they are an expense that decreases the net amount of money received by a corporation when it issued new stocks or new bonds.
