Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
Answer:
When receiving food, you can refuse to accept when if it has a foul odor
Explanation:
Such foul odor makes such food to be rejected because of the health implication as well as it does not equate to the money paid for such services rendered.
Answer:
The $200,000 represents the revenue and the $50,000 represents the profit.
Explanation:
Answer:
It has the ability to reach large audiences in a relatively cost-efficient manner.
Explanation:
Television is one of the medium used for advertising products by the sellers or the distributors or the suppliers. It is one of the mass media of advertising a product or service covering a large number of people at a particular time.
Since a cost incurred on an advertisement is just once in a few years moreover the same digital advertisement can be shown to a large or mass number of people at the same time thus proving that advertisement through television is cost effective or efficient as well.
Answer:
The Balance of stockholder's equity at December 31 Year 3 is $180000.
Explanation:
The basic accounting equation states that Assets are always equal to the sum of Liabilties and Equity.
Thus, the equation can be written as:
Assets = Liabilities + Equity
The libilities at the start of the year were,
330000 = Liabilities + 146000
Liabilities = 330000 - 146000 = $184000
If Liabilities at the end were 16000 less than at start, Closing balance of Liabilities will be 184000 - 16000 = $168000
The Closing balance of assets will be 330000 + 18000 = $ 348000
The closing balance of Stockholder's equity at Dec 31 Year 3 is:
348000 = 168000 + Equity
Equity = 348000 - 168000 = $180000
