1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry_Shevchenko [17]
3 years ago
12

On December 31, 2018, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu

e of $95,000. The bonds have an effective interest rate of 6% and pay interest of $2,500 semi-annually on June 30 and December 31. The effective interest revenue recognized for the six months ended December 31, 2018 is:
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
3 0

Answer:

$2,850

Explanation:

Given the following :

Face value of security = $100,000

Carrying value = $95,000

Effective interest rate = 6%

Interest paid semianually = $2500

The effective interest revenue recognized for the six months ended December 31, 2018 is:

IF effective interest rate = 6%

Semiannual interest = 6% / 2 = 3%

Therefore effective interest revenue for six months will be the product of the carrying value and the interest rate within the six months period :

3% = 0.03

0.03 * $95,000 = $2,850

You might be interested in
Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax
Eduardwww [97]

Answer:

1.

Sept - 30

DR Cash <u>$6,300</u>

CR Sales <u>$6,000</u>

CR Sales Tax <u>$300</u>

(<em>To record Cash sales and Tax Payable)</em>

<u>Working</u>

Sales Tax = 6,000 * 5%

= <em>$300</em>

2.

Oct - 15

DR Sales Tax Payable <u>$300</u>

CR Cash <u>$300</u>

(<em>To record remittance of Sales Tax to the State Government</em>)

3.

Sept - 30

DR Cost of Goods Sold  <u>$3,900</u>

CR Merchandise Inventory <u>$3,900</u>

(<em>To transfer inventory to Cost of Goods sold) </em>

4. <em>Repeat question for question 2.</em>

5. <em>Repeat question for question 1.</em>

8 0
3 years ago
In an economy without international trade, investment must equal ______ saving.
maks197457 [2]
Investment must equal national saving
5 0
3 years ago
Read 2 more answers
The category of complainers called irates has a very optimistic sense of the potential positive consequences of all types of com
aliya0001 [1]

The category of complainers called irates has a very  optimistic sense of the potential positive consequences of all types of complaining. False.

what is optimist character like?

Optimists don't ignore troubles or fake lifestyles is best. They simply select to cognizance on what's properly approximately a scenario and what they can do to make things higher. Optimists have true self belief due to the fact they may be organized: They understand they need to study in the event that they need to ace a hard take a look at.

Does optimistic suggest nice?

The dictionary definition of optimistic is 'hopefulness and self belief approximately the destiny or the success of some thing' whilst positivity is 'the exercise of being, or tendency to be advantageous or positive in mindset.

Is being optimistic a strength?

Optimistic is a hopeful, superb outlook on the destiny, yourself, and the arena round you. it's miles a key part of resilience, the internal electricity that enables you get thru difficult times. by means of definition, optimism facilitates you spot, feel, and suppose definitely.

what is the other of optimist?

Antonyms & near Antonyms for optimist. cynic, defeatist, pessimist.

Learn more about optimistic here:-

brainly.com/question/26406248

#SPJ4

4 0
2 years ago
State and local crime rates are affected by citizens with gambling addictions.
ahrayia [7]
True
Hope this helps
4 0
3 years ago
Read 2 more answers
Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000
fiasKO [112]

Answer:

Barb will earn interest on interest yes because she don't retire the interest

Explanation:

a. Barb will earn compound interest both will aearn compound interest.

b. Barb will earn more interest the first year than Andy both are compound annualy. The first year both will earn the same amount of interest.

c. Barb will earn interest on interest yes because she don't retire the interest and reinvest it.

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan

d. After five years, Andy will have more money in his account than Barb. No because he spend his interest.

e. Andy will earn more interest the first year than Barb both are compound annualy. The first year both will earn the same amount of interest.

3 0
3 years ago
Other questions:
  • FICO is a credit score.<br><br> True<br> False
    12·1 answer
  • Does a higher GDP imply high welfare. Why?
    14·1 answer
  • Which of the following would be included in the Lease Receivable account? I. Guaranteed residual value. II. Unguaranteed residua
    12·1 answer
  • ABC Company received $9,631 for its 5-year, 10% bonds with a total face value of $10,000. The market rate of interest was 11%. T
    6·1 answer
  • How much must be deposited today into the following account in order to have 35000
    14·1 answer
  • The degree of financial leverage for ABC Inc. is 2.5, and the degree of financial leverage for XYZ Corporation is 1.5. According
    11·1 answer
  • Someone who is young, lacks funds, and really wants to gain technical skills while serving his or her nation should consider
    10·1 answer
  • Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wag
    5·2 answers
  • Please help with economics for 100 points and brainliest
    7·1 answer
  • The following information applies to the questions displayed below.]
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!