Answer:
Dr Interest expense $141
($28,200 * 6% * 1 month / 12 months)
Cr Interest payable $141
Explanation:
Preparation of the adjusting entry that the company should make at November 30 with regard to the note.
Based on the information given the adjusting entry that the company should make at November 30 with regard to the note will be :
Dr Interest expense $141
($28,200 * 6% * 1 month / 12 months)
Cr Interest payable $141
<span>DUI or drinking under the influence of alcohol is a serious offense. With a DUI charge on a driver’s record, the price of his/her insurance greatly increases because of the hit to the driver’s record and his/her insurance policy may be cancelled at the end of the term especially if the driver’s license is suspended. Therefore, D is the correct answer.</span>
Answer: Quantity of ice skates demanded will fall
Explanation:
When ice skating becomes less popular, the demand for ice skates in the U.S market will decline. Since, this is a change in preference and not in price of ice skates, the demand curve will shift to the right (Change in demand (shift) not change in quantity demanded(movement along the same demand curve).
So, the demand curve for ice skates will shift to the left leading to a fall in the price of ice skates and the quantity of ice skates demanded.
Quantity of ice skates demanded will fall, but it is due to the leftward shift in the demand curve.
Answer:
e) 6.45%
Explanation:
Since the coupons are paid semiannually, adjust the coupon payment(PMT), the time (N) of the bond.
You can solve for cost of debt using financial calculator with the following inputs;
Maturity of the bond; N = 20 *2 = 40
Face value; FV = 1000
Coupon payment; PMT = (6%/2) *1000 = 30
Price ; PV = -(1000 - floatation cost) = -(1000 - (5%*1000) = -950
then compute semiannual interest rate; CPT I/Y = 3.224%
Convert semiannual interest rate to annual rate to find the cost of debt;
3.224% *2 = 6.45%
Answer: b. Dow Jones Industrial Average
Explanation: The Dow Jones Industrial Average index futures has a multiplier of $10 times the index value which is used to calculate contract settlements and helps determine the dollar value of each point of price movement. For example, Dow multiplier is 10, meaning each Dow point is worth $10 per contract.