Answer:
Laurel: price will decrease by 4.73% if the rates increases by 2%
and it will increase by 5.66% if the rates decreases by 2%
Hardy:
+22.28% if rate fall by 2%
-16.05% if rate decrease by 2%
Explanation:
To solve for percentage we use $1 as face value
We solve calculating the preent value of the coupon payment using the present value of an ordinary annuity formula
and add it with the present value of maturity which is calculate with the present value of lump sum
Laurel Inc:
C 0.0350
time 6.0000
rate 0.0450
PV 0.1805
Maturity 1.00
time 3.00
rate 0.09
PV 0.77
PV c $0.1805
PV m $0.7722
Total $0.9527
0.9527 - 1 = - 0.0473
a decrease of 4.73 if rate increase by 2%
C 0.0350
time 6.0000
rate 0.0250
PV 0.1928
Maturity 1.00
time 3.00
rate 0.05
PV 0.86
PV c $0.1928
PV m $0.8638
Total $1.0566
5.66% increase if rates fall 2%
For Hardy Corp we do the same procedure
C 0.0350
time 32.0000
rate 0.0250
PV 0.7647
Maturity 1.00
time 16.00
rate 0.05
PV 0.46
PV c $0.7647
PV m $0.4581
Total $1.2228
22.28% if rate fall by 2%
C 0.0350
time 32.0000
rate 0.0450
PV 0.5876
Maturity 1.00
time 16.00
rate 0.09
PV 0.25
PV c $0.5876
PV m $0.2519
Total $0.8395
0.8395 - 1 = 0.1605
Answer:
Dr unearned revenue $7,500
Cr legal services revenue $7,500
Being recognition of legal services revenue earned
Explanation:
The appropriate adjusting entry now would be to recognize the revenue earned from October 1 through to December 31.
Revenue=$10,000*3/4=$7,500
The $7,500 would be debited to unearned revenue account as it is now earned while the legal services revenue account would be credited for the same amount.
Answer:
a. Total revenue received:
= 4,500 * 140
= $630,000
Date Account Title Debit Credit
XX-XX-XXXX Cash $630,000
Unearned revenue $630,000
Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.
b. The revenue per game is:
= 630,000 / 12 games
= $52,500
Date Account Title Debit Credit
XX-XX-XXXX Unearned Revenue $52,500
Revenue - Ticket Sales $52,500
Answer:
A union is a formal group that consists of individuals in a same field or similar professions that are united for their common interests and for protection.
The idea is that a union is more effective than seperate individuals when it comes to Organizational and institutional matters.
So we can say that the main function of unions is to promote the interest of its members and to make certain that the voice of its members is heard in matters where the individuals cannot work separately and alone.
Explanation: