Answer:
1) October 1 2015, Cash $39.2million Dr
Notes Payable $39.2million Cr
2) December 31, 2015 Interest expense $0.784million Dr
Interest Payable $0.784million Cr
3) September 30, 2016 Notes Payable $39.2million Dr
Interest Payable $0.784million Dr
Interest Expense $2.352million Dr
Cash $42.336million Cr
Explanation:
1.
When note is issued, liability is credit by the notes value and cash is credited.
2.
The adjusting entry is prepared 3 months after the note is issued so the 3 month's interest on note relates to 2015 and it should be recorded as expense and as it is payable at maturity so interest payable is credited.
3 month interest = 39.2 * 0.08 * 3/12 = 0.784million
3.
The note and interest will be payable that was accrued along with the remaining 9 months interest. Total interest is 39.2 * 0.08 = 3.136million
Answer: $8.50
Explanation:
Price Outstanding Value
Total Shares 15 150,000.00 $2,250,000.00
Right Price 2 150,000.00 $300,000.00
Total Shares and Value 300,000.00 $2,550,000.00
Ex rights Price = $2,550,000/300,000 = $8.5
Answer:
A. Verify that the controls have been implemented (placed in operation).
Explanation:
The companies should have a fair policy of internal controls. It should basically have a policy which regulates and monitors all the transactions of each individual. It shall certainly be developed so that the work of one individual is monitored by the other automatically.
When the documentation is done, of such policies and controls by the auditor, he shall satisfy himself by counter checking that the procedures and practices laid are implemented properly.
So that there are no loop holes, and the management shall be held responsible for any procedure documented and not followed practically.
Answer:
A. $13,000
Explanation:
Marginal Revenue is a revenue which is received from each extra unit sold. Average Revenue of is a revenue which is from by each unit on average basis.
Monopoly firm receives maximum marginal revenue and while incurring minimum cost. It tries to maximize the marginal benefit.
Firm's profit = Quantity ( Average revenue - Average Total cost ) = 500 units ( $60 - $34 ) = 500 units x 26 = $13,000
Answer:
The correct answer is letter "D": company that specializes in making replacement tiles for the space shuttle.
Explanation:
Market-dependent industries are those whose production relies on the manufacturing of another institution. This is a threat for the entity since if the other producers fail, the entity is likely to follow the same path. The situation is even worse when the manufacturing company produces rare or uncommon goods.
Therefore, <em>a firm producing replacement tiles for space shuttles is highly market-dependent since a few organizations worldwide require spare parts for space tiles, which is not a common product traded in the market.</em>
