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On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note.
Instructions
(a) Prepare the entry on June 1.
(b) Prepare the adjusting entry on June 30.
(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.
(d) What was the total financing cost (interest expense)?
Prepare both of the journal entries to record interest on June 30 and December 31.
For each company, indicate whether the company is most likely to use job-order costing or process costing.
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Atlantic Video, a small video rental store in Philadelphia, is open 24 hours a day, and-due to its proximity to a major business school-experiences customers arriving around the clock. A recent analysis done by the store manager indicates that the..
What are Mark's tax consequences on the grant date, the exercise date, and the date he sells the shares assuming his ordinary marginal rate is 30 percent and his long-term capital gains rate is 15 percent?
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When measuring the cost of capital, many companies measure the cost of the common stock in the company.
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