Answer:
(A). A Debit to Notes Payable for $960
Explanation:
In case of a promissory note, there are three parties to it, namely,
- Maker i.e Jones here
- Payee, to whom money is to be paid i.e the bank here
- Holder i.e the one who currently holds the promissory note i.e the bank here
Upon issue of promissory note, in the books of the maker (Jones), the entry is,
Name Of The Bank A/C Dr. $960
To Notes Payable A/C 960
(Being a promissory note issued to bank against a payment of $960)
Upon maturity i.e date of payment, the entry would be,
Notes Payable A/C Dr. $960
To Cash/Bank A/C 960
(Being payment of promissory note honored)
Thus, the correct answer would be, (A) a debit to notes payable account for $960.
Answer:
Depreciation Expense = $16900
Explanation:
Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.
Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.
Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900
Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.
Answer:
Equity Beta= 2,529
Explanation:
The risk of investing in a particular stock is measured with a metric referred to as equity beta. Equity Beta measures the volatility of the stock to the market, how sensitive is the stock price to a change in the overall market. It compares the volatility associated with the change in prices of a security. It changes with the capital structure of the company which includes the debt portion.
There are 3 methods to calculate Equity Beta:
1- Using the CAPM Model
2- Using Slope Tool
3- Using Unlevered Beta
In this exercise, we have the information to use the third method.
Equity Beta Formula = Unlevered Beta [ 1 + (D/E)( 1-Tax )]
Unlevered Beta= 1,23
D/E= 0,46
Tax rate= 0,35
Equity Beta = 1,23 + (1+0,46*0,65)
Equity Beta= 2,529
Answer:
A Common Market
Explanation:
A Common Market is the one where a group is created or established by countries within the area of geographical in order to encourage the duty free trade as well as the free labor movement and also the capital among the members. In the market, it imposes a common external tariff on the imports.
So, in this market, members eliminate the barriers of trade and adopt or follow the common policy.
Answer:
Dr. Freight-in $28
Dr. Supplies Expense $42
Dr. Entertainment of Clients $65
Dr. Postage Expense $30
Dr. Cash Short/over $3
Cr. Cash (200-32) $168
Explanation:
Petty cash is kept to deal with the day to day expense of the business. It is kept separate from the cash balance of the company.
To replenish the fund we, need to record the petty cash expenses in their respective accounts and deduct the amount from petty cash account.
If the cash is short or over the balance shown in the account we also need to record it.
