For the Following Transaction, Provide All of the Required Journal

question 38

Essay

For the following transaction, provide all of the required journal entries from inception to liquidation. Assume a December 31 year-end and that the company does not prepare interim statements. Round all amounts to nearest dollar. $\begin{array}{lr}\text { Face value of note payable } & \$ 200,000 \\\text { Date of issue for note } & \text { May } 1,2019 \\\text { Due date for note } & \text { May } 1,2020 \\\text { Interest rate in the note } & 5 \% \\& \text { (interest due at maturity) } \\\text { Market rate of interest } & 5 \% \\\text { Consideration received } & \text { Cash }\end{array}$

Learn how to calculate and interpret price elasticity of demand.

Understand the concepts of perfectly elastic and perfectly inelastic demand.

Grasp how changes in price influence total revenue depending on the elasticity of demand.

Identify factors that affect the elasticity of demand, including time and availability of substitutes.

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Definitions:

Diluted Earnings

Net income available to common shareholders, adjusted for the potential impact of convertible securities, options, and warrants, showing earnings per share if all convertibles were exercised.

Investing Section

Part of the cash flow statement that reports the acquisition and disposal of long-term investments and property, plant, and equipment.

Operating Section

The part of the income statement that displays the revenues and expenses directly related to the core business operations.

Variable Interest Entities (VIEs)

Entities in which the investor holds a controlling interest that is not based on a majority of voting rights, requiring a special consolidation treatment under financial accounting standards.