Answer:
$15000
Explanation:
All types of bonds have some common characteristics which include;
- A face/par value
- A coupon rate (interest rate).
- Either redeemable/irredeemable or convertible.
The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).
The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.
In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).
The economic system in the USA is rooted in the Laissez-Faire
capitalism of Adam Smith. However, the real-world setting in the US is not as Laissez-Faire
as Smith would have liked because the government greatly participates as more
than umpire and rule maker. The government take part in American Business by
way of resource or product markets, interest, and especially taxes which
results in making the American business progressed into a mixed economy,
showing both elements of capitalism and socialism.
Other factors such as <span>foreign
competition, the Great Depression, World Wars I and II, and the increasing age
of population have also contributed to the mixed economic system.</span>
Answer:
The correct entry is to reverse the entry on December 3rd
Dr Salaries and Wages expenses of $27,000
Cr Salaries and Wages payable of $27,000
Explanation:
During the time of the accrued entry, which is on December 31st
the company registered
Dr Salaries and Wages PAYABLE of $27,000
Cr Salaries and Wages EXPENSES of $27,000
It was just an accrued entry to be able to identify the expenses to the balance sheet, but currently on the original expenses on January 3rd, the entry is reverse, then the real or main expenses is recorded in the balance sheet.
Dr Cash of $47,000
Cr Salaries and Wages EXPENSES of $47,000
Answer:
$850,000
Explanation:
The computation of Amount of income should Torrey realize from the lease transaction is shown below:-
Amount of income should Torrey realize from the lease transaction = Sale price - Cost
= $3,850,000 - $3,000,000
= $850,000
Therefore for computing the amount of income should Torrey realize from the lease transaction we simply deduct the cost from sales price.
<span>Someone may choose to own a car instead of leasing because they may end up needing to drive it farther and longer than the set milage or wanting to own the vehicle outright instead of making lease or rental payments. If you damage the vehicle, it also becomes more expensive because you do not own it entirely. Reporting damage or mile overage to the leasing company results in fees and penalities. </span>
