Answer:
The adjusted balance for Prepaid Insurance is $1,200. Whereas, the expired Insurance that is to be charged to Profit or Loss Statement is $1,500.
Explanation:
The Double Entry to Record the Expired Resource (Insurance) is:
Insurance Expense (Dr.) $1,500
Prepaid Insurance (Cr.) $1,500
This implies that the adjusted balance for Prepaid Insurance is 2,700 - 1,500 = $1,200.
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Answer:
Your stock will be valued in $20,838.
Explanation:
If there are no taxes, it is expected that the value of the stock will lower the amount of the dividend. That means
Stock price (April 19) = stock price - dividend = 93-2.4=90.6 $/share
In this case, your stock of 230 shares will be valued as
Stock value = Stock share * stock price = 230 shares * $90.6/share
Stock value = $ 20,838
Your stock will be valued in $20,838.
Answer:
$1,073.60
Explanation:
bond's current price = PV of face value + PV of coupons
maturity = 10 years
face value = $1,000
coupon rate = 7% annual
market rate = 6%
PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39
PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21
market value at issue date = $558.39 + $515.21 = $1,073.60
since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.
Answer:
b. 7 percent
Explanation:
Benefits here means the statutory benefits that the employees have a right to receive. These on the legal terms are the requirements, as the employer is required to contribute around 7.65% of the salary paid to the employee towards benefits of social security and Medicare.
This clearly is the standard set for the payroll. Now this also provides for the minimum contributions, thus it provides that at-least these are to be made.
Thus, each employer when making a standard salary shall contribute more than 7% towards the benefits of the employees.
