Answer:
The correct journal entry is:
B. Dr. Equipment $1000 Cr. Interest Payable $1000.
Explanation:
The company will debit the interest cost to its Equipment under construction account with the sum of $1,000 while the Interest Payable is credited with the same amount. The adjustment of the interest cost helps the company to capitalize the $1,000 with a debit to its asset account and a credit to the liability account since the amount has not been paid out to the finance house affected. By capitalizing the interest cost, the asset's value is increased while the interest payable increases the current liability of the company as at the date of the adjustment.
Atms, direct deposit and online saving plans.
Answer:
c) buying a bond for $ 1,000 with the expectation of selling it in a year for $ 950
c) putting $ 1,000 in a savings account that has a 2.25 % interest rate and no service fee while expected inflation is 3.25 %
Explanation:
For the first question all are negative returns as the account will charge service but earn no interest, the euro will depreciate and the bond will be sale below par. The correct option would be do nothing and keep the 1,000 dollars but, being forced to pick among these three option then, purchase the bond is better.
For the second question the third option has an inflation which is similar to the annual service charge but, earn interest therefore will provide a better return as the interest compensate a portion of the inflation loss.
Foods of generic brand are most likely to be more affordable than the same category of food which bear some brand names. It is therefore just right that these foods be marketed in financially challenged areas. In that way people will have options to buy more affordable products.
Also, this can be marketed to establishments whose business are directed towards repackaging of goods.
