On January 2,2010,Cardy Computers Purchased Machinery by Paying $15,000 Down

question 74

Essay

On January 2,2010,Cardy Computers purchased machinery by paying $15,000 down and signing a 4-year,10% installment note for the $60,000 balance.The loan agreement called for 8 semiannual payments beginning July 1,2010.Determine the amount of each semiannual payment (round to the nearest dollar)and prepare journal entries for the first two payments,including the accrual at year end.Cardy has a December 31 year end.

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Definitions:

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.

Margin Deposit

A deposit required by a broker from a client when they borrow from the broker to buy securities, serving as collateral for the loan.

Long Positions

Investing strategy where an investor buys a security with the expectation that it will increase in value.

Short Positions

An investment strategy where an investor sells borrowed securities with the intention of buying them back at a lower price to profit from a price decline.