Answer:
discount; 1.8%
Explanation:
Calculation for the forward rate using this formula
forward rate=(F/S) - 1
Let plug in the formula
forward rate= ($1.60/$1.63) - 1
forward rate= -1.8 percent.
Therefore The forward DISCOUNT is 1.8 percent.
Answer:
Dr Bond investment $50,000
Cr cash $50,000
Dr cash $1,250
Cr interest revenue $1,250
Dr cash $50,000
cr bond investment $50,000
Explanation:
On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount
On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.
Upon receipt of face value at redemption,the journal entry would be opposite of the initial one
Answer:
B sell some
Explanation:
in a scenario where it is dropping, it doesn't mean it won't come back up. So you would sell some but keep a few so if it went up you still make profit
No, It would not be because it does not have a serial number.
Answer:
4,700 shares
Explanation:
The computation of the number of shares of common stock outstanding at the end of the period is shown below
= Beginning shares + issued shares - repurchase shares + reissue shares
= 2,000 shares + 3,000 shares - 500 shares + 200 shares
= 4,700 shares
We applied the above equation to find out the number of shares outstanding at the end of the year
