Answer:
Explanation:
The journal entry is shown below:
On September 30
Bonds payable A/c Dr $1,000,000
Loss on bond retirement A/c Dr $20,000
To Discount on Bond A/c $10,000
To Cash A/c $1,010,000
(Being the callable bond is recorded)
The computation is shown below:
For cash
= Par value of bond + Premium
= $1,000,000 + $10,000
= $1,010,000
For Loss, it would be
= $1,010,000 - $990,000
= $20,000
And, the remaining amount would be transferred to discount on bond
Answer:
E. Invest in mutual funds.
Explanation:
Individual investors tend to have relatively small portfolios and are usually unable to realize economies of size. The best strategy is to pool funds with other small investors and allow professional managers to invest the funds. Here, a fund manager is hired to invest the cash the investors have contributed, and the fund manager's goal depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.
Answer:
Hart Corp.'s note should be reported at $10,000
Maxx Inc.'s note should be reported at $7,883
Explanation:
Interest bearing notes that represent current accounts (due within one year) should be reported at face value. Hart Corp.'s note is due in nine months, so it should be reported at = $10,000
Maxx Inc.'s note must be recorded at present value because it is due in 5 years.
FV = $10,000 x 1.03⁵ = $11,592.74
now we must determine its present value using an 8% discount rate:
PV = $11,592.74 x 0.680 = $7,883
Answer
Reputation Management
Explanation:
As a way to maintain its popularity with the fans due to the scandal, MLB's need to look into reputation management
Answer:
The answer is $52,000.
Explanation: When calculating GDP, only finished goods are included in the calculation, items that are used to manufacture other goods are not included in the calculation of GDP.
Therefore, the leather that was bought to produce couches in 2006 will not be included in GDP, because its value is included in the value of couches.
Couches, Inc. produced 16 couches and sold them for $3,000 each, computing that, we have:
16 x $3,000
= $48,000.
However, inventory that Cowhide, Inc. has that is worth $4,000 was produced in 2006 as well, so it is included in the GDP. This item will be included in the GDP because it has not yet been bought to used in manufacturing another item. So the answer is $52,000.
