Answer:
The correct answer is option A
Explanation:
A receipt of cash indicates an increase in cash which is an asset. When an asset increases, it is represented by a debit to that asset's account and the asset side of the accounting equation is also debited. Thus, a receipt of $12000 cash from stockholders will be represented by a debit or an increase to the asset account for $12000.
The other side of the transaction would be a credit to the equity for $12000 because the stockholders are the owners of the company and any capital invested by the owners in the company is represented by a credit to the equity account as the capital is credited when it increases. Thus, the effect on accounting equation will be an increase in the equity of $12000.
C because it’s something you pay every month
Unless u.s. legislatures give courts and prison administrators more leeway to interchange prison sentences with community sentences, states will continue to find themselves in economic crises as they attempt to provide for the 33% of the inmate population projected to be elderly by the year 2030.
<h3>What is an economic crisis in your own words?</h3>
- The term "economic crisis" refers to a situation where a country's economy has a sudden decline in strength, typically caused by a financial crisis. The current economic situation could manifest as stagflation, a recession, or an economic depression.
- Asset values endure a sharp decrease in value during a financial crisis, firms and individuals cannot pay their loans, and financial institutions face a liquidity shortage.
- An economic crisis occurs when a country has a sudden decline as a result of a financial crisis, whereas a financial crisis is a situation in which the values of financial assets in an economy collapse rapidly.
- A debt crisis can result in significant losses for domestic and foreign banks, potentially jeopardizing the viability of financial systems both in the crisis-hit nation and beyond. This may hinder economic expansion and wreak havoc on international financial markets.
Unless u.s. legislatures give courts and prison administrators more leeway to interchange prison sentences with community sentences, states will continue to find themselves in economic crises as they attempt to provide for the 33% of the inmate population projected to be elderly by the year 2030.
To learn more about economic crises, refer to:
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Answer:
Option A => A. $7,106 in the Discount on Bonds Payable account.
Explanation:
So, from the question we are given the following parameters or data or information:
''Frog Brand issues a $100,000 10 year bond with a stated interest rate of 6% while the market interest rate is 7% on January 1, 2020. On January 1, 2020 Frog Brand receives cash for the issue price of $92,894 for the bond''
Hence, the discount on issue of bond can be calculated by using the formula below;
(Issued Bond) - ( the received cash on issue).
= $ 100,000 - $92,894 = $7,106.
Therefore, Frog Brand will have a balance of $7,106 in the Discount on Bonds Payable account.
