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sasho [114]
2 years ago
7

Chandler Co. has a loan that accrues interest at a rate of $28 a day. The company pays the interest once a quarter. What adjustm

ents would be made at the end of a month in which no payment for interest was made?
Business
1 answer:
shutvik [7]2 years ago
5 0

Answer:

The Adjustment Entry for accrual of Interest Expense will be as follows:

                                              Dr.       Cr.

Interest Expense                $840

Interest accrued Payable               $840

Explanation:

Interest per day = $28

Interest expense for the Month = $28 x 30 = $840

$840 of Interest expense will be accrued at the end of the month and it should be adjusted accordingly.

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Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s six segments? Wh
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Answer:

Yes, PepsiCo’s portfolio exhibit good resource fit.

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  • Ability to provide a buffer against future financial challenges
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8 0
2 years ago
clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum, starting next year. She wants the an
Sergeeva-Olga [200]

Answer:

$166,666.67

Explanation:

Clarissa wants to take charge of finding a growing perpetuity that will pay a total amount of $5,000 per year to a local museum

She wants the annual amount paid to the museum to grow by 5% per year

= 5/100

= 0.05

The interest rate is 8%

= 8/100

= 0.08

Therefore, the amount used to fund the perpetuity can be calculated as follows

Pvo= $5,000/(0.08-0.05)

= $5,000/0.03

= $166,666.67

Hence Clarissa needs $166,666.67 to fund the perpetuity.

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C. A decrease in the money supply

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