Assume that on December 31, 2013, The Coca-Cola Company borrows money from a consortium of banks by issuing a $900 million promissory note. The note matures in four years on December 31, 2017, and pays 3% interest once a year on December 31. The consortium transfers $867.331 million (rounded) to Coca-Cola, implying that the bank expects a 4% return on the note.

a. Use the template below to show the financial statement effects of (1) the December 31, 2013, issue, (2) the December 31, 2014, interest payment and interest expense accrual, and (3) the December 31, 2015, interest payment and interest expense accrual.

Assets Liabilities Shareholders' Equity
CC AOCI RE

Journal entry:

b. Assume that events involving foreign operations have increased the risk of The Coca-Cola Company to the point where creditors expect a 5% return on the note as of December 31, 2015. What amounts would Coca-Cola report for long-term debt (1) on the face of its December 31, 2015, balance sheet and (2) in the notes to the financial statements?
c. In addition to the information in Requirement b, assume that The Coca-Cola Company has chosen the fair value option for the reporting of this note. What amounts would Coca-Cola report for long-term debt (1) on the face of its December 31, 2015, balance sheet and (2) and on the income statement with respect to the note’s fair value change?

Journalize the following transactions that occurred in september 2015 for aquamarines. no explanations are needed. identify each accounts payable and accounts receivable with the vendor or customer name. sep. 3 purchased merchandise inventory on account from shallin wholesalers, $5,000. terms 1/15, n/eom, fob shipping point. 4 paid freight bill of $80 on september 3 purchase. 4 purchased merchandise inventory for cash of $1,700. 6 returned $500 of inventory from september 3 purchase. 8 sold merchandise inventory to hermosa company, $6,000, on account. terms 2/15, n/35. cost of goods, $2,640. 9 purchased merchandise inventory on account from thomas wholesalers, $8,000. terms 2/10, n/30, fob destination. 10 made payment to shallin wholesalers for goods purchased on september 3, less return and discount. 12 received payment from hermosa company, less discount. 13 after negotiations, received a $200 allowance from thomas wholesalers. 15 sold merchandise inventory to jordan company, $2,500, on account. terms 1/10, n/eom. cost of goods, $1,050. 22 made payment, less allowance, to thomas wholesalers for goods purchased on september 9. 23 jordan company returned $400 of the merchandise sold on september 15. cost of goods, $160. 25 sold merchandise inventory to smithsons for $1,100 on account that cost $400. terms of 2/10, n/30 were offered, fob shipping point. as a courtesy to smithsons, $75 of freight was added to the invoice for which cash was paid by aquamarines. 26 after negotiations, granted a $100 allowance to smithsons for merchandise purchased on september 25. 29 received payment from smithsons, less allowance and discount. 30 received payment from jordan company, less return.

What could increase the value of your property

When the united states buys more products than it sells from other countries what is created?