Answer:
1. $24,300
2. 12
3. the bond is trading at a discount.
4. $470,090.86
5. <u>Journal Entry</u>
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
Explanation:
<u>1. seml-annual Interest payment</u>
Seml-annual Interest payment = ($540,000 × 9 %) ÷ 2
= $24,300
<u>2. Number of seml-annual Interest payment</u>
Number of seml-annual Interest payment = 6 years × 2
= 12
<u>3. Issue</u>
The annual market rate for the bonds (YTM) , 12% is greater than the coupon rate of the bond 9%.
The Price will be less than the par value and we say that the bond is trading at a discount.
<u>4. Computation of the Issue Price, PV</u>
PMT = $24,300
n = 12
YTM = 12 %
FV = $540,000
p/yr = 2
PV = ?
Using a Financial Calculator, the Issue Price, PV is $470,090.86
<u>5. Journal Entry</u>
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
Answer: <u>The answer is A. $60,000 increase.</u>
<u />
Explanation: 1: The actual units sold multiplied by the budgeted sale price is equal to a total of $440000 (40000 x 11 = $ 440000)
2: The actual units sold multiplied by the actual sale price is equal to $500000 (40,000 x 12.5 = $ 500,000)
3:<u> $500000 - $440000 = </u><u>$60000</u><u> increase by the unit price factor.</u>
<u />
Answer: D. Restrictions on travel into and out of affected areas.
Explanation:
Restrictions on travel in and out of affected areas can lead to Scarcity in a Pandemic because there is no free movement of labour and capital.
With borders shut down, goods that were normally imported will suddenly become very hard to acquire because getting them through travel bans is very hard and in most cases, impossible.
Also affected are services as, for instance, the people who provided such services might live in or come from the place they provide said service to. Getting into those areas might prove too cumbersome a task thereby limiting Service provision.
Looking at the current Corona Virus Pandemic that has seen the most extensive Travel Restrictions by Countries in recent times and looking at the Scarcity being suffered by those same countries, drawing the conclusion that the Scarcity is as a result of an impediment to free movement of Goods and Services is most logical.
<span>quaker marketing message is designed to help the consumer to :
- Recognize a problem (which is that people often do not have enough time to make their own breakfast before go to work)
and
- </span><span>acknowledge breakfast as important and make it a priority in their busy day (and make customers aware that they need to consume something nutritious to be able to function properly at their job)</span>
