We
should note that the bond investment account is recorded at cost by the Bondholder
or Investor.
The
cost or price is calculated as:
Cost
= $90,000 * 86.4%
Cost
= $90,000 * 0.864 = $77,760
Therefore,
the entry to record should be:
<span>debit
Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760</span>
Answer:
Correctly ignored a sunk cost.
Explanation:
In economics a sunk cost is one that an individual has already paid for and cannot recover. For example when payment is made for rent it is no longer recoverable.
In this instance Eric has already bought a $50 ticket that is nonrefundable, nonexchangeable, and nontransferable. This is a sunk cost.
Eric wants to go to the concert with Ginny who he wanted to date for a long time.
He will correctly ignore the sunk cost of going to the play because any more time spent on the play will not help recover the $50 already spent.
Answer and Explanation:
The preparation of the income statement is presented below:
Service revenue $634,900
Less:
Depreciation Expense $10,000
Insurance Expense 9,000
Miscellaneous Expense 8,150
Rent Expense 60,000
Supplies Expense 4,100
Utilities Expense 44,700
Wages Expense 548,200
Net loss -$49,250
Answer:
E, C, B
Explanation:
Those seem like they'd be Carrer clusters
