Answer:
Option C is correct one.
Interest expense 773
Discount on bonds payable 73
Cash 700
Explanation:
2016 interest expense = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate
= $9,668 x 08
= $773
Cash interest payment
= maturity value of the bond x the stated interest rate = $10,000 x .07
= $700
Amortization of discount on bonds payable
= interest expense - interest cash payment
= $773 - $700.
= $73
Answer:
Hart Corp.'s note should be reported at $10,000
Maxx Inc.'s note should be reported at $7,883
Explanation:
Interest bearing notes that represent current accounts (due within one year) should be reported at face value. Hart Corp.'s note is due in nine months, so it should be reported at = $10,000
Maxx Inc.'s note must be recorded at present value because it is due in 5 years.
FV = $10,000 x 1.03⁵ = $11,592.74
now we must determine its present value using an 8% discount rate:
PV = $11,592.74 x 0.680 = $7,883
Answer:
Tt is highly productive in reducing the costs to produce a product.
it is highly productive in producing a highly valued commodity.
Explanation:
A product has derived demand If its demand is dependent on the demand for other products.
For example, there would be no need to demand for labour if no one demands for goods.
The derived demand for a good will increase if it reduces the price of the product and if it is important in the production of a good
Answer:
See below
Explanation:
Given the above details, post closing ending balance of retained earnings would be calculated by
= Debit balance in the retained earning + credit in the retained earnings - Credit balance in the retained earnings
= $308,800 + $99,000 - $347,400
= $60,400
Answer:
Boeing sells an airplane to the Air Force is purchases by the Government
Boeing sells an airplane to the American Airlines is Investment
Boeing sells an airplane to the Air France is net exports
Boeing sells an airplane to the Amelia Earhart is Consumption
Boeing builds an airplane to be sold next year is an Investment
Explanation:
Purchases by Government represent goods and services bought by Federal,State or Local tier of Government and Air Force is part of the Government
Investment refers to goods bought in order to produce other goods or services,since American Airlines would convey passengers in the airplane,no doubt it is an investment.
Net export exports relate to worth of goods and services provided to other nations less the value of such goods and services the foreign nations provided to ours.Since the sale to a foreign company,it is ultimately a net exports taking import as zero.
Consumption refers to sale of goods and services to private individuals intended for private use.
Building up stock for sale next year is an investment in inventory.
