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Alinara [238K]
3 years ago
10

On January 1, 2020, Sheffield Company purchased at face value, a $1230, 10% bond that pays interest on January 1. Sheffield Comp

any has a calendar year end. The adjusting entry on December 31, 2020, is:
Business
1 answer:
kupik [55]3 years ago
4 0

Answer:

Dr Interest receivable 123

    Cr Interest revenue 123

Explanation:

Since Sheffield Company purchased the bonds at face value, all they need to report is accrued interest receivable. Since the interest is paid on January 1, they already have earned a year worth of interest.

Dr Interest receivable 123 (= $1,230 x 10%)

    Cr Interest revenue 123

The next day, January 1, you will need to record the interest received:

Dr Cash 123

    Cr Interest receivable 123

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Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri'
gladu [14]

Answer:

Henri's 2006 salary in 2001 dollars =$46,666.66

Explanation:

A rise in the price index implies inflation

Inflation is the increase in the general price level. Inflation erodes the value of money.  

This price index is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.  

So we can determine the salary in the base year value  as follows:  

2006 Salary in the base year terms=

CPI base year/CPI in the current year × salary in the current year

CPI base year- 177, CPI in the current yea- 256.5,

Salary in the current year - 70,000

Henri 2006 Salary in 2001 Dollar

=177/265.5 ×70,000/265.5 = 46,666.66

Henri's 2006 salary in 2001 dollars =$46,666.66

8 0
3 years ago
Should a company alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the compa
nalin [4]
NO. The company should not <span>alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the company does business. Especially if the alteration made is against company polity and ethics. 

The marketing campaigns must represent the authentic stance of the company. It should be presented in such a way that it gives out positive responses from clients and potential clients regardless of market sector.


</span>
8 0
3 years ago
The current risk-free rate of return in the economy is 1.5%. In addition, the market rate of return is currently 6%. Given that
ludmilkaskok [199]

Answer:

The company’s systemic risk level (beta coefficient) is 2.44%

Explanation:

According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)

Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)

        = (12.5% - 1.5%)/(6% - 1.5%)

        =2.44 %

Therefore, The company’s systemic risk level (beta coefficient) is 2.44%

Systematic risk is the risk which affects all the stocks of the economy. It cannot be diversified away. Example interest rate and inflation in the economy. Beta represents systematic risk of the company.

7 0
3 years ago
Keynes rejected the view that lower wages would direct a recessionary economy back to full employment because
Lorico [155]

Answer: the options are added below:

A. market forces would quickly direct an economy back to full employment.

B. lower wages would cause the central bank to reduce the money supply and thereby prolong the recession.

C. lower wages would stimulate inflation and thereby prolong the recession.

D. powerful trade unions and large corporations made wages highly inflexible.

The correct option is D.

Explanation: A Trade Union is also known as a labour union and it is an association of workers in a particular trade, industry, or company that is created for the aim of negotiating improvements in wages and salaries, benefits, better working conditions, or social and political status through collective bargaining.

The view of Keynes is that the trade unions that have become powerful have, in conjunction with large corporations, made wages highly inflexible.

What this means is that they always make sure that there will be no supply of labor if the wages are low, therefore Keynes is of the view that lowering wages will not direct a recessionary economy back to full employment, rather, increasing the wages will ensure that the trade unions and large corporations supply labor and therefore increase employment.

3 0
3 years ago
You are trying to value the common stock shares BeGood Company using a market multiples approach. Begone just reported annual ea
lakkis [162]

Answer:

$22.81

Explanation:

We can easily calculate share price for BeeGood company just by multiplying the current earnings per share with an average P/E ration of competitors

P/E = Price earning ratio

EPS = Earning per share

Formula: Share price = PE x EPS

Share price = \frac{(11.2+13.25+14.88)}{3} x $1.74

Share price = $22.81

7 0
3 years ago
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