Answer:
The Village
The two reconciliation entries that Village must include in its government-wide financial statements relating to its Bond Liability are:
1. Debit Interest Expense $500
Credit Interest Payable $500
To record the accrued interest expense for the year.
2. Debit Cash $3,000
Credit Bond Liability $3,000
To record the issuance of new bonds during the year.
Explanation:
a) Data and Analysis:
Beginning bond liability = $10,000
Interest Expense $500 Interest Payable $500
Cash $3,000 Bond Liability $3,000
b) The first is to accrue interest expense of $500 and record Interest Payable of $500. The second is to record the new Bonds issued during the year.
Answer:
Dr Interest Expense account 10,000
Cr Cash account 10,000
Explanation:
We have to calculate how much interest did the company paid = $100,000 x 10/12 x 12% = $10,000
Then we must record the journal entries
- Dr Interest Expense account 10,000
- Cr Cash account 10,000
Since cash is an asset and it decreases, then it should be credited.
Since interest is an expense and it increases, it should be debited.
Answer:
D. Ensure that she credits the loan amount accurately to the customer's account.
Explanation:
Financial institutions are companies that offer a wide range of monetary and financial services to various customers. The financial institutions include; commercial banks, brokerage firms, investments firms and currency exchange companies. The services offered are; cash deposits and withdrawals, loans, investment services and currency exchange services.
These services can be offered to individuals or even companies that might need a wide range of financial services. In order for these services to be conducted in an orderly fashion, the services offered have to be regulated. This means that the service providers and the customers have to operate within a legal threshold. A knowledge of the legal responsibility of each party is therefor important in these type of environment.
In our case, the legal responsibility of Erin who works as a representative of the financial institution would be to ensure that she credits the loan amount accurately to the customer's account since Erin had already approved the customer's housing loan.
Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30