Answer:
$7,500,000 in 8% bonds, 5 years to maturity, semiannual coupon ($300,000)
sold at premium for $7,740,000
the journal entry to record the issuance should be:
Dr Cash 7,740,000
Cr Bonds payable 7,500,000
Cr Bond premium 240,000
<u>Using the straight line amortization:</u>
amortization per coupon payment = $240,000 / 10 coupons = $24,000
Dr Interest expense 276,000
Dr Bond premium 24,000
Cr Cash 300,000
Answer:
True
Explanation:
Financial services are the activities rendered by any financial institution such as the banks to their customers. Most of the services are done at a fee that makes the main source of revenue for banks. The revenue is spent to pay the overall expenses of the bank. If the expenses are lower than the revenue, a bank makes profit. If expenses exceed revenue, a bank makes loss which is not mostly the case. Therefore, it is true to say that banks work to earn a profit by selling financial services.
Answer:
Advertisement doesn't exist in perfect competition markets. Perfect competition markets are theoretical only, since they do not exist in reality although some markets resemble or are similar, e.g. commodities. One of the characteristics of perfect competition markets is that every participant possesses perfect information regarding the products' characteristics and price. If everyone knows a product perfectly, then there is no reason why you should advertise it.
Explanation:
Answer: Please refer to the explanation section
Explanation:
The question is incomplete, the statement which we much choose from are not given in the question we will explain the question and provide a clear solution to make it easier for the student to single out a false statement.
Property acquisition was financed by two mortgage Bonds, First Mortgage Bond was $60 000 and the second mortgage bonds was $23 500. Ignoring interest rate we can assume that the Value of the Property is $83500 ($60 000 + $23 500).
Property was sold for $88000, There is a profit on sale of the property. Profit earned amounted to $4500 ($88000 - $83500). The profit on sale of property ($4500) will reported on the income statement. The property Value will be derecognized from long term assets in the the balance sheet statement.
The profits on sale of the property will form part of the net income for the year. Net income is distributed to shareholders in the form of dividends. We can therefore conclude that a portion of Profits on sale of property, if not all will be distributed to the share holders as dividends
