Exhibit 4
MarginWHEW Bank Case Journal Entries and Summary
of Results
(Students are required to fill in the
numbers shown in red.)
Instructions: Please fill in debits without dollar signs and credits in parentheses. If there is no entry for a given account, please leave it blank rather than entering a zero. Note that all accounts listed for a given date will not necessarily have entries on that date.
|
Discounting |
at 0.0% APR | Discounting | at 6.0% APR | ||
|
|
|
Debit |
|
Debit |
|
|
Date |
MarginWHEW
Bank Accounts |
(Credit) |
Balance |
(Credit) |
Balance |
|
1999 |
Assumed
FAS 133 discount rate = |
0.000000% |
0.000000% |
0.016438% |
0.016438% |
|
17-Dec |
Cash |
10,000,000
|
10,000,000
|
10,000,000
|
10,000,000
|
|
|
Notes
payable |
(10,000,000) |
(10,000,000) |
(10,000,000) |
(10,000,000) |
|
|
-To
record borrowing for one year |
|
|
|
|
|
|
|
|
|
|
|
|
17-Dec |
Cash |
(10,000,000) |
0
|
(10,000,000) |
0
|
|
|
Notes
receivable |
10,000,000
|
0
|
10,000,000
|
0
|
|
|
-To
record lending for one year |
|
|
|
|
|
|
|
|
|
|
|
|
17-Dec |
Cash |
(500) |
(500) |
(500) |
(500) |
|
|
Futures
margin account |
500
|
500
|
500
|
500
|
|
|
-To
record margin account |
|
|
|
|
|
|
|
|
12/31/99 |
|
12/31/1999 |
|
31-Dec |
Cash |
0
|
(500) |
0
|
(500) |
|
|
Futures
margin account |
2,250
|
2,750
|
2,186
|
2,686
|
|
|
Other
comprehensive income (OCI) |
(3,000) |
(3,000) |
(2,918) |
(2,918) |
|
|
Interest
expense (revenue) |
750
|
750
|
732
|
732
|
|
|
- To
adjust futures contracts to fair value.
|
|
|
|
|
|
|
|
|
01/31/00 |
|
01/31/2000 |
|
31-Jan |
Cash |
0
|
(500) |
0
|
(500) |
|
|
Futures
margin account |
8,000
|
10,750
|
7,894
|
10,580
|
|
|
Other
comprehensive income (OCI) |
(7,500) |
(10,500) |
(7,348) |
(10,266) |
|
|
Interest
expense (revenue) |
(500) |
250
|
(546) |
186
|
|
|
- To
adjust futures contracts to fair value.
|
|
|
|
|
|
|
|
|
02/29/00 |
|
02/29/2000 |
|
29-Feb |
Cash |
0
|
(500) |
0
|
(500) |
|
|
Futures
margin account |
31,000
|
41,750
|
30,489
|
41,069
|
|
|
Other
comprehensive income (OCI) |
(42,000) |
(52,500) |
(41,305) |
(51,571) |
|
|
Interest
expense (revenue) |
11,000
|
11,250
|
10,816
|
11,002
|
|
|
- To
adjust futures contracts to fair value.
|
|
|
|
|
|
|
|
|
03/17/00 |
|
03/17/2000 |
|
17-Mar |
Cash |
28,500
|
28,000
|
28,500
|
28,000
|
|
|
Futures
margin account |
8,250
|
50,000
|
7,837
|
48,906
|
|
|
Other
comprehensive income (OCI) |
(11,000) |
(63,500) |
(10,506) |
(62,077) |
|
|
Interest
expense (revenue) |
(25,750) |
(14,500) |
(25,831) |
(14,829) |
|
|
- To
adjust futures contracts to fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
17-Mar |
Cash |
200,000
|
228,000
|
200,000
|
228,000
|
|
|
Interest
expense (revenue) |
(200,000) |
(214,500) |
(200,000) |
(214,500) |
|
|
-To
record interest on note receivable |
|
|
|
|
|
|
|
|
|
|
|
|
17-Mar |
Cash |
(145,347) |
82,653
|
(145,347) |
82,653
|
|
|
Interest
expense (revenue) |
145,347
|
(69,153) |
145,347
|
(69,153) |
|
|
-To
record interest on note payable |
|
|
|
|
|
|
|
|
03/31/2000 |
|
03/31/2000 |
|
31-Mar |
Cash |
0
|
82,653
|
0
|
82,653
|
|
|
Futures
margin account |
1,000
|
51,000
|
1,092
|
49,998
|
|
|
Other
comprehensive income (OCI) |
(2,000) |
(65,500) |
(2,104) |
(64,181) |
|
|
Interest
expense (revenue) |