Answer: See attachment
Explanation:
Note:
April 17:
Account payable- Lyon Company:
= $5000 - $750
= $4250
Merchandise inventory:
= $4250 × 2%
= $4250 × 0.02
= $85
Cash = $4250 - $85
= $4165
April 28:
Account payable- Frist Corp:
= $9300 - $500
= $8800
Merchandise inventory:
= $8800 × 1%
= $8800 × 0.01
= $88
Cash = $8800 - $88
= $8712
Check the attachment for further information
Answer:
9.90%
Explanation:
The appropriate approach is to include the amount expected to kept in non-interest bearing account as part of the loan
total loan=$400,000/0.95= 421,052.63
Interest charge = 421,052.63*9%*6/12=$18,947.37
interest rate percentage=$18,947.37/$400,000=4.74%
Effective annual rate=(1+4.74%
/6)^12-1 =9.90%
By dividing by 6, the interest is expressed in monthly terms
By raising to the power of 12 , it is expressed in yearly terms
Answer:
the journal entry to record bond issuance:
Dr Cash 1,444,000
Dr Discount on bonds payable 76,000
Cr Bonds payable 1,520,000
amortization of discount on bonds payable = $76,000 / 5 = $15,000
coupon payment = $91,200
total interest expense per year = $106,200
total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>
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Answer:
C the economy remains in a contraction for two quarters.
Explanation:
A recession is a period characterized by a decline in the level of economic activities. A decrease in the GDP value indicates the slowing down of economic activities. Should be GDP value decline for two or more consecutive quarters, the economy is said to be in a recession. Slowing down or decline in economic activities is referred to as contraction.
During a recession, the level of unemployment rises, demand for goods and services reduces, and income levels also decline. Recessions usually last between six to eighteen months. A prolonged recession results in depression.
