Answer:
d. $7,032
Explanation:
The computation of the interest expense is shown below:
= Sale value of the bond × market interest rate ÷ 0.5
= $117,205 × 12% ÷ 0.5
= $117,205 × 6%
= $7,032
Simply we multiply the sale value of the bond with the market interest rate so that the accurate amount of the interest expense can come.
We divide it by 0.5 because as the number of months is 6 months and total months is 12. The six month is calculated from the January 1 to July 1
Answer:
Declaration:
Dr retained earnings $135,000
Cr dividends payable $135,000
Record date:
no entries are required
Payment date:
Dr dividends payable $135,000
Cr cash $135,000
Explanation:
The declaration implies that an amount is set aside from retained earnings in order to pay dividends to stockholders,which means that retained earnings is debited with $135,000 while dividends payable is credited with the same amount.
On payment date,the cash account would show a credit,an outflow while dividends payable is debited with $135,000 in order to show that the dividends obligation has been discharged
Answer:
bachelors degree
Explanation:
just answered this on my test and got correct.
Answer:
11.88%
Explanation:
The computation of the bank's asset utilization ratio is shown below:
= Total Revenues ÷ total assets
where,
The Total revenue is computed below:
= Total assets × total assets ratio + non interest income
= $700 million × 5.45% + $45 million
= $38.15 million + $45 million
= $83.15 million
And, the total assets is $700 million
Now put these values to the above formula
So, the ratio would equal to
= $83.15 million ÷ $700 million
= 11.88%