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tigry1 [53]
3 years ago
13

A company issues bonds with a $100,000 par value, an 8% annual contract rate, semiannual interest payments, and a five year life

. The bonds sold for $107,850. The entry to record the issuance of the bonds will include:
Business
1 answer:
Juli2301 [7.4K]3 years ago
3 0

Answer:

                                          Dr.           Cr.

Cash                            $107,850

Bond Payable                               $100,000

Premium on Bond Payable          $7,850

Explanation:

When the Bond is issued on the price more than its face value, the exptra amount from face value received is called Bond Premium.

Bond Face value = $100,000

Issuance price = $107,850

Premium Paid =$107,850 - $100,000 = $7,850

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<h2>Answer</h2>

B. adds up all the income collected by all the sellers.

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Calculating GDP via the income approach of the established approaches, the income generated by all factors of production is the most accurate answer for the Gross Domestic Product (GDP) of a country. This therefore establishes that the income generated by factors in the household in exchange of the services or products they have provided to consumers, represent the value of the total goods and services sold in the economy.


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Business operations Essay​
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Answer:

The description of the given term "Business operations" is provided below.

Explanation:

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2 years ago
Which of the following are characteristics of a perpetuity?
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Answer:

B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.

Explanation:

A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.

There are certain characteristics

Option B

The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.

Option C.

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