Answer:
$54.17 per bond
Explanation:
the journal entry to record the issuance of the bond:
Dr Cash 1,100
Cr Bonds payable 1,000
Cr Premium on bonds payable 100
The bond premium amortization using straight line amortization:
$100 / 30 = $3.33 per coupon payment
journal entry to record coupon payment:
Dr Interest expense 41.67
Dr Premium on bonds payable 3.33
Cr Cash 45
the yearly interest expense = $41.67 x 2 = $83.34 x (1 - tax rate) = $83.34 x 0.65 = $54.17
People spend less money; GDP falls
Answer:
don't know what is the answer sorry
very sorry
Answer:
The financial statements effects of the appropriation are as follows:
a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.
b) Cash balance will also reduce by $65,000 in the Balance Sheet.
Explanation:
Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.
Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.
Answer:
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- <u><em>Law of demand</em></u>
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Explanation:
Indeed, the <em>law of demand </em>is that the price and quantity demanded are inversely related. <em>Ceteris paribus</em>, the economist say. It is a latin expression that means "<em>other things equal</em>".
As the resources are, per definition, scarce, the consumers, ecomomic agents who buy the products, need to allocate the money among the different goods and services that the market puts at their disposal.
And they allocate the resources in a intelligent way: they "calculate" the utility of each product considering the cost. If the price increase, the ratio of utility to cost decreases and the consumer will diminish the quantity demanded for that good. If the price decrases, the utility to cost ratio increases and the quantity demanded will increase.
