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baherus [9]
4 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]4 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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Which of the following characteristics would you expect QRT Software to have? Check all that apply. In this company, decision ma
Rom4ik [11]

QRT Software creates and distributes inventory-control software. The heart of QRT Software is a small group of product managers who work with a number of external companies. One company develops the code, another is responsible for marketing, a third for quality control, and a fourth for distribution.

QRT Software is an example of team organization. As a result of this structure, which of the following are you likely to observe? Check all that apply

Answer:

This structure allows an organization to focus on a core competency.

The company is highly flexible.

This company uses outsourcing extensively to achieve organizational goals.

Explanation:

QRT Software can be seen as a well structured virtual organization; it comprises of various interdependent organizations working together through a small central team, hence, the extensive use of outsourcing to achieve the company's needs and goals.

At the same time, the vitual nature of the firm, made decision making to be spread among the external companies, thereby making the central organization to focus on its core competency. In return, this gives the company a lot of flexibility.

3 0
3 years ago
A woman earns 15% more than her husband. Together they make $58,695 per year. What is the husband's annual salary?
yarga [219]

Answer:

$27,300

Explanation:

Let husband's salary be x

Wife's salary is 15% more than husband's salary. This implies that wife's salary is 15% of x plus x.

Wife's salary = 0.15x + x

                     = 1.15x

Sum of their salaries = $58,695

Substituting the values in the equation:

58,695 = 1.15x + x

2.15x = 58,695

x = $27,300

Husband's annual salary is computed as $27,300

3 0
3 years ago
You want to have $1,000,000, 25 years from today. Assuming a 7% annual return (which will be compounded monthly), how much do yo
scoundrel [369]

Answer:

Monthly payments = $1,234.54

Explanation:

given data

Future value = $1,000,000

time = 25 year = 25 × 12 = 300 months

rate = 7 % annual = \frac{0.07}{12} = 0.5833%  monthly

to find out

Monthly payments

solution

we will apply here future value formula that is express as

Future value = Monthly payments × \frac{(1+rate)^{time} - 1}{rate}  ..........1

put here value we get

Future value = Monthly payments × \frac{(1+rate)^{time} - 1}{rate}

1,000,000 = Monthly payments × \frac{(1+0.005833)^{300} - 1}{0.005833}

solve it we get

Monthly payments = $1,234.54

8 0
3 years ago
Be careful with a ________ strategy. Because price is a cue for developing customer perceptions of product quality, the value pr
katovenus [111]

Answer:

A. penetration pricing

Explanation:

Penetration pricing strategy is an approach where a business seeks to gain a sizeable market share by offering a product at a reduced price. The penetration strategy is mostly used when introducing a new product in a competitive market. Marketers use reduces prices to entice customers to buy the and new product.

Penetration pricing strategy aims at changing customer preferences by introducing a new, low-priced product. There is always a risk that customers will perceive this new and low-priced product to be of inferior quality. Middle and high-end customers are more likely to view a low-cost product item as not of their desired standard

7 0
3 years ago
True or False:
rusak2 [61]

Answer:

Check the explanation

Explanation:

Efficient market theory states that the security price reflects all the available information of the market. It means there is no reason to believe that prices are incorrect.  

Thus, the given statement is false.  

The past data is not useful for decision making. Information of past trends may not help the investor to earn abnormal returns.  

The statement is consistent with weak form efficiency as current price reflects the past price movements.  

Thus, the statement belongs to weak form efficiency.  

The stock price will increase and settle at a new equilibrium level.  

4 0
3 years ago
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