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3 years ago

Question 24 (multiple choice)

1 answer:

3 0

Set up an equation

[$250 + $401.50 + (Sept expenses)] /3 =$400

solve for x

[651.50 + x] /3= 400
[651.50 + x] /3*3= 400*3
651.50 + x = 1200
-651.50 -651.50
————————————
x = 548.50

So your answer is D.

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A government bond issued in France has a coupon rate of 5% (paid annually) and a face value of 100 euros, and it matures in 5 ye

Nina [5.8K]

Answer:

Bond Price= 106.77

Explanation:

Giving the following information:

Face value= 100

Coupon= 100*0.05= 5

Yield To Maturity= 0.035

Years to maturity= 5 years

To calculate the price of the bond, we need to use the following formula:

Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price= 5*{[1 - (1.035^-5)] / 0.035} + [100/(1.035^5)]

Bond Price= 22.57 + 84.2

Bond Price= 106.77

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3 years ago

Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1

Nesterboy [21]

Answer:

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

Explanation:

When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.

Elimination of the common items in consolidation is done by the use of Pro-forma Journals.

Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.

Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

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3 years ago

Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?

Sphinxa [80]

Answer:

The correct answer is C. standard of living is ultimately determined by long-term growth.

Explanation:

The long-term path for economic growth is a fundamental issue of the study of the economy. The increase in the GDP of a country is usually considered as an increase in the standard of living of its inhabitants. Over long periods of time, even small annual growth rates, can have a significant effect. Thanks to its conjugation with other factors.

An annual growth rate of 2.5% would lead to GDP doubling over a period of 30 years. While an annual growth rate of 8%, it would lead to the same phenomenon in a period of only 10 years. Example: Some countries like Asian tigers. When a population increases to see improvements in living standards, GDP has to grow faster than that population. This analysis seeks to understand why there are very different rates of economic growth in some regions of the world.

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3 years ago

Wage contracts, efficiency wages, and the minimum wage are explanations for why:

hjlf

Answer:

B. Wages tend to be inflexible downward

Explanation:

Wages are flexible if they react to changes in demand and supply. Profitability determines demand and supply level for wages. Flexibility in wages means that If the economy is performing well, companies should compensate their employees better.

Wage inflexibility implies that wages will not respond to changes in demand and supply. Wages do not rise or fall if the marginal productivity of labor increases or decreases. Wage contracts are agreements that tend to set compensation for workers regardless of their output. Minimum wage is a regulatory requirement that demands workers not to be paid below a set rate. Wage efficiency recommends higher than market rate compensation to motivate productivity.

The three factors do not advocate for wages to be pegged on productivity.

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3 years ago

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2

VARVARA [1.3K]

Answer:

a. First set of entries:

Debit: Accounts receivable with $2,000

Credit: Bad debt expenses with $2,000

b. Second set of entries:

Debit: Cash with $2,000

Credit: Account receivables $2,000

Explanation:

These entries will appear as follows in the book Gideon Company on July 10:

Details DR ($) CR ($)

Accounts receivable 2,000

Bad debt expenses 2,000

Being the transfer of the bad debt recovered back to the accounts receivable.

Cash 2,000

Account receivables 2,000

Being the cash income received in respect of bad debt recovered.

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3 years ago

Read 2 more answers