Answer and Explanation:
The adjusting entry is as follows
Interest receivable Dr ($18,600 × 10% × 42 days ÷ 360 days) $217
To Interest revenue $217
(being the interest revenue is recorded)
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
The 42 days are calculated from Nov 19 to Dec 31
Answer: $51
Explanation:
A, B, C, D, E, F, G were purchased for $2.50 per letter which means they cost;
= 7 * 2.50
= $17.50
H to L were purchased at $4.50 per letter which means they cost;
= 5 * 4.5
= $22.50
M to R were purchased at $5.50;
= 6 * 5.5
= $33
Total inventory cost = 17.50 + 22.50 + 33 = $73
Inventory sold = 2.5 + 2.5 + 2.5 + 4.5 + 4.5 + 5.5
= $22
Ending Inventory = Total inventory - inventory sold
= 73 - 22
= $51
Answer:
The Answer is B) Rises in the secondary market decreases.
Explanation:
When the coupon rate on newly issued bonds<u> decreases</u> relative to older, outstanding bonds, the market price of the older bond rises in the <u>secondary market.</u>
<u></u>
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate
For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.
If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.
Cheers!
Answer:
The Federal Reserve is the central bank of the United States. It is the bank for other banks and the banker to the government.
It functions include:
a) Acts as a banker's bank to clear checks, provides deposit services for banks, and facilitates smooth payment and settlement system.
b) As the banker's bank, it supervises and regulates member banks in order to protect consumers and maintain a healthy economy. It also protects banks by ensuring they adhere to regulations and best practices.
c) It uses open market operations to target the supply of money in the economy by ensuring that the monetary policy of the government is carried out, especially with respect to inflation and deflation. It uses interest rates and reserve rates to achieve this control.
d) It is the government's bank, offering banking services to the government, as other banks offer to corporations, institutions, and individuals.
Explanation:
It is not the function of the Federal Reserve to change tax rates to stabilize business cycles. This is the government's prerogative, acting with Congress. What the Federal Reserve changes is the interest and reserve rates.
The Federal Reserve does not have powers to increase government expenditures on infrastructure. It does not provide banking services to larger corporations directly. Instead, it provides banking services to the governments.
