A bank loaned York Construction Company $35,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry made by York to record receipt of the cash would include an
a. increase in Cash for $35,000.
b. decrease in Notes Payable for $32,900.
c. increase in Discount on Notes Payable for $2,100.
d. increase in Interest Revenue for $2,100.
c
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Define association
Initek Co's stock trades for $12.50. Initek has too much cash. The CEO, Bill Lumberg, wants to distribute the excess cash with an open market stock repurchase. He is contemplating buying back $5.45M worth of shares at a price of $12.50
Initek is an all equity company with 20M shares outstanding. Pete Gibb owns 2 million shares in Initek. He purchased his shares before the repurchase for $12.50. If Pete sells the same proportion of shares as the company repurchases (and receives the same price that they pay), then what is his change in wealth from before to after the repurchase? A) -$2.500 million B) -$1.250 million C) $0 D) $2.500 million E) $12.50 million
Koehl Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Departments Operating Department AdministrativeFacilities AssemblyWholesalingDepartmental costs$19,440$71,340 $185,580$392,950Employee hours4,0002,000 22,00014,000Space occupied2,0001,000 39,0002,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to:
A. $403,990 B. $396,430 C. $402,601 D. $403,642
Rick Edgars, a famous sports personality, appears in Venus Inc.'s ads in which he notes how the company's golf clubs have helped him win several major championships. He also states that in his experience, the clubs have a "perfect swing." Which of the following types of advertising execution is illustrated in this scenario?
A. slice of life B. demonstration C. dramatization D. testimonial E. scientific evidence