On 1 January, 2015, Hikers Inc., a U.S.-based company, borrowed £200,000 on a two-year note at a per annum interest of 4.5%. The spot rate on this day was $1.65 per pound. The spot rate on 31 December, 2015, was $1.64 per pound. The journal entries to account for this foreign currency borrowing will include:______

Answers

Answer 1

Answer:

Debit to Interest expenses for $14,760 on December 31, 2015

Explanation:

At the end of December 2014, the accrued interest is to be accounted based on exchange rate prevailing on that date.

The Journal entry would be as follows:

Account Title                  Debit       Credit

Interest expenses        $14,760

Interest payable                             $14,760

(£200,000*4.5%*$1.64 per pounds)


Related Questions

Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. What was the effect of this fraud on worldcom's income statement?

Answers

Answer:

net income was too high, expenses were too low

Explanation:

From the question, we are told about how Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. In this case the effect of this fraud on worldcom's income statement is that net income was too high, expenses were too low. An income statement which can also be regarded as "profit and loss" account is a financial statement that gives the revenue as well as the expenses of a company at a particular period, so if the Executive capitalize costs that should have been expensed then it equates to the net income been too high while expenses were too low.

Assume there are two countries (France and the United States) and two goods (Wine and Cheese). In France, labor productivity in Wine is 40 bottles per hour and 30 kilos per hour in Cheese. In the US, labor productivity in Wine is 12 bottles per hour and 12 kilos per hour in Cheese. Given this information, which country has the comparative advantage in Cheese

Answers

Answer:

United States

Explanation:

A comparative advantage results when a country's opportunity cost of producing good X is lower than the opportunity cost of producing good X in another country.

France

Opportunity cost of producing wine = 30/40 = 0.75 kilos of cheese

Opportunity cost of producing cheese = 40/30 = 1.33 bottles of wine

United States

Opportunity cost of producing wine = 12/12 = 1 kilo of cheese

Opportunity cost of producing cheese = 12/12 = 1 bottle of wine

France has a comparative advantage in the production of wine, and the US has a comparative advantage in the production of cheese.

On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937 (an inputed rate of 10%). The goods have an inventory cost on Parnevik's books of $400,000.

Required:
Prepare the journal entries for Parnevik on (a) March 1, 2020, and (b) December 31, 2020.

Answers

Answer:

Parnevik Company

Journal Entries:

(a) March 1, 2020

Debit Notes Receivable (Goosen Inc.) $660,000

Credit Sales Revenue $660,000

To record the sale of goods in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937.

Debit Cost of Goods Sold $400,000

Credit Inventory $400,000

To record the cost of goods sold.

(b) December 31, 2020:

Debit Interest Receivable (Goosen Inc.) $55,000

Credit Interest Revenue $55,000

To record the interest receivable for 10 months on the note.

Explanation:

The sale of goods will be recorded net of the interest.  Interest Receivable from Goosen Inc. will be accumulated until when it is settled by Goosen Inc. at the end of the note's 5-year life.  By that time, the interest must have accumulated to $402,937 compounded yearly.

(20) points

What could be the most likely result of Andrew offering credit facility to his customers?
A.
higher business losses
B.
lesser number of customers
C.
sell his goods below the market rates
D.
more competition
E.
customer loyalty

Answers

Answer:

you lied about the points but I'll be nice E

the first option (A)

Two sentences only. i'll give brainliest.

1. How important is elasticity in the analysis of the market?
2. What are tge relying factors of demand elasticity?​

Answers

Answer:

(1)Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. ... If the market price goes up, firms are likely to increase the number of goods they are willing to sell.

(2) Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price

Which of these was the first government of the United States?

Group of answer choices

Constitution

Declaration of Independence

Articles of Confederation

Mayflower Compact

Answers

Answer:

Declaration of independence

Explanation:

I did that test yesterday lol

Answer:

3. Articles of Confederation

Explanation:

Hope this helps!

Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%.

Answers

Answer:

Bond Price​= $424,588.28

Explanation:

Giving the following information:

Face value= $485,000

Number of periods= 10*2= 20

Interest rate= 0.08/2= 0.04

YTM= 0.1/2= 0.05

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 19,400*{[1 - (1.05^-20)] / 0.05} + [485,000/1.05^20)

Bond Price​= 241,766.88 + 182,791.4

Bond Price​= $424,588.28

____ are the goods and materials available for sale at the beginning of a period.


Raw materials

Ending inventory

Cost of goods sold

Beginning inventory

Answers

Answer:

Beginning inventory

Explanation:

Beginning inventory refers to the finished goods that are still in the business premises at the beginning of a fiscal year. They represent the finished products that the business was not able to sell in the past period. Beginning inventory becomes part of the inventory to be sold in the current year.

Other terms that describe beginning inventory are opening inventory, opening stock, and balance brought forward.

Answer:

D- Beginning inventory

Explanation:

Now that you know about the different types of bank accounts, relate this information to your chosen career path. Write a paragraph explaining the type(s) of bank accounts that you would need in order to save enough money for college or training for your career. Your answer should address the following questions:

Do you already have a bank account? If so, which type(s), and how do you use them? If not, then how could you go about opening a bank account of your own?
After learning about the different types of bank accounts, which one do you think offers the best options for saving money for college, daily living expenses, and an emergency fund?
Define a bounced check, or a check returned for insufficient funds. Explain a circumstance in which someone might bounce a check (give an example), and create and discuss a plan so that this does not happen to you.

Answers

Answer:

I pay for my expenses using either my debit card or cash that I withdraw from the ATM. It is very rare that I write a check to pay for my purchases. If there is an emergency situation, I withdraw money from one of my certificates of deposit.

I want to be a physicist, and I plan to earn a graduate degree in physics from Harvard University. I don’t have enough money saved up to pay for my tuition, even though I have two certificates of deposit accounts and one savings account. This means that I will probably have to take a student loan from my bank. However, I do have sufficient money in my checking account to pay for my daily expenses.

A bounced check is a check that a person has written but cannot pay for due to insufficient funds. For example, a person might send a check for a credit card bill but the person’s bank account may not have sufficient balance to pay this amount. To avoid check bouncing, I’ll always try and remember a rough figure of the money in my account. Additionally, wherever possible, I will pay my bill either in cash or by debit card.

Explanation:

PLATO sample answer

A bank monetary base account is managed by a bank or other financial institution wherein the bank records financial transactions with customers.

Bank Account:

We pay for all our purchases with a debit card or cash from an ATM. I rarely pay for things with a check. I can take money out of one of my certificates of deposit because I need it in an emergency.

We want to be a physicist and plan to study physics at Harvard University. Although I have two savings deposits and one savings account, I may not have enough money set aside to pay for my tuition. As a result, I'll most likely need to borrow money from my bank for a student loan. My term deposit, on the other hand, has enough cash to cover our everyday needs.The bounced check has been written but cannot be paid because of a lack of money. The person may, for example, submit an account to cover a credit card debt, yet his or her bank account may not have adequate funds to cover the payment. I'll try to remember a rough figure of the money in my account to avoid checks bouncing.I'll also pay my share in cash or through a debit card whenever feasible.

Find out more about the bank account here:

brainly.com/question/16953228

The next dividend payment by ASAP, Inc., will be $2.00 per share. The dividends are anticipated to maintain a 4.00% growth rate, forever. If ASAP stock currently sells for $14.75 per share, what is the required return?

Answers

Answer:

r = 0.175593 or 17.5593% rounded off to 17.56%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is dividend expected for the next period /year g is the growth rate r is the required rate of return  

Plugging in the values for D1, P0 and g, we can calculate the value of r to be,

14.75 = 2 / (r - 0.04)

14.75 * (r - 0.04)  =  2

14.75r - 0.59  =  2

14.75r = 2 + 0.59

r = 2.59  /  14.75

r = 0.175593 or 17.5593% rounded off to 17.56%

Suppose US$1 = €0.7809 in New York and US$1 = €0.7793 in Paris. How can foreign exchange traders profit from these exchange rates? What actions can they take that may result in the same dollar/euro exchange rate in both New York and Paris? Please limit your response to one or two reasonably-sized paragraphs.

Answers

Answer:

If a Dollar is worth $ 0.7809 Euros in New York, and $ 0.7793 Euros in Paris, the way in which foreign exchange traders could obtain an economic profit through this difference would be by buying Euros in Paris, and selling them again in New York. Thus, they would obtain $ 0.016 of profit for each Euro traded in the market, with which, for example, if $ 1,000,000 of Euros were traded, a total profit of $ 16,000 would be obtained. In turn, trading the same amount in both Paris and New York, traders would not make any profit, equating both exchange rates.

Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for revenue of $460,000. How many of each did you sell?

Answers

Answer:

140 luncheons, 160 dinners

Explanation:

The number of luncheons and dinners that are sold will be 140 and 160, respectively.

What is the solution to the equation?

The allocation of weights to the important variables that produce the calculation's optimum is referred to as a direct consequence.

Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for a revenue of $460,000.

Let 'x' be the number of Luncheons and 'y' be the number of dinners. Then the equations are given as,

x + y = 300                                                  ...1

1,000x + 2,000y = 460,000                         ...2

From equations 1 and 2, then we have

1,000(300 - y) + 2,000y = 460,000

300,000 - 1,000y + 2,000y = 460,000

1,000y = 160,000

y = 160

Then the value of 'x' is given as,

x + 160 = 300

x = 300 - 160

x = 140

The number of luncheons and dinners that are sold will be 140 and 160, respectively.

More about the solution of the equation link is given below.

https://brainly.com/question/545403

#SPJ6

A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity (YTM)?

Answers

Answer:

YTM = 0.070616 or 7.0616% rounded off to 7.06%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

C is the coupon paymentF is the Face value of the bondP is the current value of the bondn is the number of years to maturity

Coupon payment = 1000 * 0.08 = 80

YTM = [ (80 + (1000 - 1110 / 20))  /  (1000 + 1110 / 2)

YTM = 0.070616 or 7.0616% rounded off to 7.06%

If a company’s net income increased while its net sales remained constant, the company's profit margin would:_____

a. Compare favorably to its competitors.
b. Decrease.
c. Increase.
d. Not be impacted.

Answers

Answer:

c. Increase.

Explanation:

If a company’s net income increased while its net sales remained constant, the company's profit margin would increase.

This is simply because the amount of money that is being generated from the sales of goods and services are increasing.

On December 31, 2017, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000. What amount would the company report as its net accounts receivable on December 31, 2017

Answers

Answer:

Accounts receivable is $745,000

Explanation:

The company would report as net receivable, the total amount on accounts receivable minus total amount on the Allowance for uncollectible Accounts, which implies that the balance represent the amount of credit that will not be possible to collect again hence, the value represent balance on net accounts receivable.

Accounts receivable = Adjusted balance in accounts receivable - Allowance for doubtful accounts

= $800,000 - $55,000

= $745,000

On November 19, Hayes Company receives a $15,000, 60-day, 10% note from a customer as payment on his account. What adjusting entry should be made on the December 31 year-end

Answers

Answer:  A debit to Interest receivable  at $175

               A credit  to Interest Revenue      at $175

Explanation:

Interest revenue = Principal x rate s time ( from Nov 19 - December 31st)

=$15,000 x 10% x 42/360  ( taking days in a year = 360 days )

= $175

Adjusting  Journal entry for Hayes Company on December 31st year end

Date            Account titles                         Debit        Credit

December 31st   Interest receivable       $175

                             Interest Revenue                              $175

What were true about all the states of natures in Decision making under ignorance (hint: how likely was any one of them to happen

Answers

Answer: They would be treated equally

Explanation:

States of natures in decision making under ignorance would be treated equally, and as such they would be treated equally.

Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should ________ its product lines

Answers

Answer:

Increase the depth of.

Explanation:

As the above case may be a product line can explain the variety in marketing and selection of a product and any commodity as the case may be and as the said company increases in growth, its product depth line should be increased. Therefore, a product line goal can be to maximize profits by positioning new products with the highest number of features or with the most cutting-edge individual features at the highest price point. And also you’ll be keeping a base product on sale as a lower-priced alternative

One of the benefit of this been set i.e product line; is to let potential customers know the particular product that will tend to fit their capability in many cases as the case may be in product selection.

who is captain america​

Answers

Answer:

a super hero that's part of marvel

Answer:

Captain America is a marvel character played by Chris Evans.

Explanation:

Captain America started out as a normal kinda scrawny teenager who joined the American Army during World War II. He was transformed into a super soldier and became an insanely fit and strong human being. He saved many people during the war, but unfortunately was frozen in ice for like 66 years. So, he became part of a group called the Avengers. Kind of like a vigilante group. And finally, he was able to go back in time and marry the woman of his dreams, and he retired from the avengers after, the time travel left him in his actual age, well into his 80's.

Disposable personal income: a. excludes transfer payments. b. includes personal income taxes. c. is income spent for personal items such as homes and cars. d. excludes personal income taxes

Answers

Answer:

d. excludes personal income taxes

Explanation:

Disposable personal income excludes personal income taxes.

A disposable income can be defined as an amount of money remaining after the deduction of income taxes, and social security fees.

What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.

Answers

Answer: A

Hope this helps!!!

Answer:

What are accountants most likely involved in as part of their daily activities within an organization?

A.

Preparing profit and loss statements.

B.

Working on distribution-related logistics.

C.

Contacting potential new retailers.

D.

Working on production schedules and shifts.

Explanation:

Plato

Mr. Ghani wants to deposit his savings of Rs. 50,000 in a bank which offers 8% interest compounded semi-annually to withdraw Rs. 2,500 at the end of each six months from the date of deposit. How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted

Answers

Answer:

How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted is explained below in detail explanation.

Explanation:

Let the no of withdrawals be n, then

Present value of n withdrawals = 50000

Interest rate per 6 months =8%/2 =4%

Withdraw amt/(Int rate)*(1-1/(1+interest)^n) = 50000

=> 2500/0.04*(1-1/1.04^n) = 50000

1/1.04^n = 0.2

1.04^n = 5

=> n = ln(5) / ln(1.04) = 41.03

Total 41 withdrawals of Rs.2500 can be made (with a smaller 42nd installment of less than Rs.2500)

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold 200,000
Sales revenue $1,560,000
Variable manufacturing expense $660,000
Fixed manufacturing expense $448,000
Variable selling and administrative expense $180,000
Fixed selling and administrative expense $214,000
Net operating income $58,000

The company's unit contribution margin is closest to:______

a. 15,128 units
b. 16,1 units
c. 168,986 units
d. 100,444 units

Answers

Answer: $3.60

Explanation:

Contribution Margin is calculated by deducting variable expenses from the sales.

= Sales - Variable manufacturing expense - Variable selling and administrative expense

= 1,560,000 - 660,000 - 180,000

= $720,000

Unit Contribution Margin = 720,000/200,000 bags sold

= $3.60

The options are not for the Unit Contribution Margin.

Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,000. The debits to the Land and Buildings accounts will be:

Answers

Answer:

Debit Land for $360,000

Debit Buildings for $640,000

Explanation:

The total acquisition cost has to be allocated based on the appraisal value of each of the Land and Buildings.

Therefore, the amount to be debited to the Land and Buildings accounts can be calculated as follows:

Total acquisition cost = $1,000,000

Land appraisal value = $450,000

Buildings appraisal value = $800,000

Total appraisal value = Land appraisal value + Buildings appraisal value = $450,000 + $800,000 = $1,250,000

Amount allocated to Land = (Land appraisal value / Total appraisal value) * Total acquisition cost = ($450,000 / $1,250,000) *  $1,000,000 =  $360,000

Amount allocated to Buildings = (Buildings appraisal value / Total appraisal value) * Total acquisition cost = ($800,000 / $1,250,000) *  $1,000,000 =  $640,000

Therefore, the debits to the Land and Buildings accounts will be the allocated amounts to each as follows:

Debit Land for $360,000

Debit Buildings for $640,000

Unemployment is often called a lagging or trailing indicator because unemployment tends to rise some time after the economy begins to slow down, and unemployment begins to fall again after the economy begins to rebound. Unemployment trails GDP because:

A) laws prevent firms from reducing employment during recessions and during expansions people are still collecting unemployment insurance.
B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.
C) when the economy is in a recession, firms do not want to pay unemployment insurance, and during expansions they do not want the added cost of new employees.
D) the labor force increases during recessions and shrinks during expansions.

Answers

Answer:

B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.

Explanation:

In the case when the output falls so the workers would not be laid off in a direct manner. In the first time the labor would be decreased so that the demand could be analyzed. The same would be happen in that case also where the growth picked up

Therefore in the given case, the option B is correct

And the other options are wrong

a. Distinguish between physical asset markets and financial asset markets. What’s the difference between spot markets and futures markets?
b. Distinguish between money markets and capital markets. What’s the difference between primary markets and secondary markets?
c. Differentiate between private and public markets. Why are financial markets essential for a healthy economy and economic growth?

Answers

Answer:

a. Physical assets are tangible, they can be touched, seen, used. They generally lose value over time because they depreciate. On the other hand, financial assets are intangible, they only exist because documents say so. Their price can change if interest rates change of if market conditions change.

Spot markets are markets where securities, currencies or commodities are traded immediately. While futures markets represent the trading of securities, currencies or commodities at a future date.

b. Money markets are where investors trades short term securities, while capital markets are where stocks, bonds and other long term securities are traded.

Primary markets exist only when securities are issued for the first time, e.g. an IPO. The vast majority of trading occurs in secondary markets since a security can literally be traded hundreds of times and all of these operations, except for the initial issuance, take place in secondary markets.

c. Public markets are all the trading markets where publicly traded corporations exchange or trade securities, and anyone can buy them, e.g. NYSE, NASDAQ, etc. Private markets only involve trading of privately held securities, e.g. stocks of closely held corporations. Only certain investors can trade with private securities, they are not available to the general public.

Financial markets basically receive savings from private households and businesses, and they transfer them (as investments) to other companies that need these resources to operate and grow. There is a direct relationship between healthy financial markets and economic development.

In an E-Contract, what are the similarities and differences between an Online Offer and an Online Acceptance?

Answers

ANSWER:

the answer is pet your dogo

Explanation:

When each additional worker hired contributes less than the previous worker hired to total output, we can say there are (is):_______

a. falling average productivity
b. diminishing marginal utility
c. diminishing average returns
d. diminishing marginal returns

Answers

Answer:

d. diminishing marginal returns

Explanation:

The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant

Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired

So this represents the diminishing marginal returns

hence, the option d is correct

Your goal is to earn an annual salary of $100,000 three years from now. You expect to increase your salary by 6.5 percent annually. How much do you need to earn this year if you are going to reach your goal?

a. $72,988.08
b. $82,784.91
c. $87,878.88
d. $84,363.13

Answers

Answer:

$87,878.88

Explanation:

Calculation How much do you need to earn this year

Using this formula

PV = FV/ (1 + r )^n

Where,

FV =Future Value=$100,000

PV = Present Value

r = rate of interest=6.5%

n= no of period=3 years

Let plug in the formula

PV = $100,000 / ((1 + 6.5%)^3)

PV = $82,784.91

Therefore the amount you need to earn this year will be $82,784.91

"I before E, except after C, or when sounded like A, as in 'neighbor' or 'weigh' is an example of a mnemonic. What memory aid does this mnemonic use?"
A. Emotional connection
B. Visual images
C. Song or rhyme

Answers

Answer:

C. Song or rhyme

Explanation:

The memory aid is the testing technique in which the students are able to recall the things by practising them many times

Here in the given situation it is mentioned that I before E exclude C etc is an example of a mnemonic

So this represents the song or rhyme memory aid so that the mnemonic could be used as the following sequence is necessary in this

hence, the correct option is C.

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