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baherus [9]
3 years ago
11

On January 1, 2020, National Retail purchased $100,000 of GEH Company bonds at a discount of $10,000. The GEH bonds pay 6% inter

est but were purchased when the market interest rate was 8% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. National Retail accounts for the bonds as a held-to-maturity investment and uses the effective interest method. In National Retail’s December 31, 2020, journal entry to record the second period of interest would include a credit to interest revenue of:
Business
1 answer:
rusak2 [61]3 years ago
4 0

Answer:

Cr Interest revenue $3,624

Explanation:

Dr Investment in bonds 100,000

    Cr Cash 90,000

    Cr Discount on investment in bonds 10,000

the first coupon payment:

(90,000 x 4%) - $3,000 = $600

Dr Cash 3,000

Dr Discount on investment in bonds 600

    Cr Interest revenue 3,600

the second coupon payment:

(90,600 x 4%) - $3,000 = $624

Dr Cash 3,000

Dr Discount on investment in bonds 624

    Cr Interest revenue 3,624

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You have been investing $300 a month for the last 8 years. Today, your investment account is worth $43,262. What is your average
sdas [7]

Answer:

Having invested $ 300 per month for the past 8 years, the total accumulated investment amount would be $ 28,800 (8 x 12 x 300). Now, having a total amount of $ 43,262, we find an increase of $ 14,462, which corresponds to the interest accumulated during said period. To know the percentage of the increase, we must perform a cross multiplication:

28,800 = 100

14,462 = X

(14,462 x 100) / 28,800 = X

1,446,200 / 28,800 = X

50.21 = X

As we can see, the investment had an increase of 50.21% during these 8 years. Now, the average increase in investment arises from the division of the total percentage of increase by the number of years. So, given that 50.21 / 8 = 6.27, the average annual return rate of this investment is 6.27%.

5 0
3 years ago
The country imposes a tariff on foreign-produced goods. (For simplicity, suppose that the effect of the tariff is the following:
Shtirlitz [24]

Answer:

It is said that the country imposes a tariff on the foreign produced goods due to this implementation of tariff the demand for the domestic goods is also high, as a result the exports demand rises. Due to this effect the real exchange rate rises from E1 to E2 and the equilibrium point increased from point one to another.

8 0
3 years ago
Skills that can be used in any occupation are ___________ skill. (soft or hard)​
mojhsa [17]

Answer: The answer is hard skills. Hope this helps :)

Explanation:

In most jobs being teachable is better and not all occuaptions include communication & human services.

8 0
3 years ago
. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
GalinKa [24]

Answer:

B. Controllable costs

Explanation:

There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
3 years ago
Prepare journal entries to record the following production activities.
blagie [28]

Answer:

1.Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Explanation:

Preparation to record Journal entry

1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as :

Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:

Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Since factory payroll was paid the transaction will be recorded as :

Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

5 0
3 years ago
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