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Ganezh [65]
3 years ago
13

Ban Co purchased 50, 5% Waylan Company bonds on January 1, 2016 for $50,500 cash Interest is payable annually on January 1 the J

anuary 1, 2017 annual interest payment would include a:__________.
a. debit to Interest Revenue for $2,500 B.
b. credit to Interest Revenue for $2,525
c. The entry to record C credit to Interest Receivable for $2,500 D.
d. credit to Debt Investments for $2.525
Business
1 answer:
I am Lyosha [343]3 years ago
5 0

Answer:

a. debit to Interest Revenue for $2,500

Explanation:

Based on the information given we were told that Ban Company made a purchased of 50, 5% Waylan Company bonds for the amount of $50,500 which is a cash Interest that is payable annually which means that the annual interest payment would include a: DEBIT to Interest Revenue for $2,500 calculated as :

Interest Revenue=[(50 x $1,000)×5%]

Interest Revenue=$50,000×0.05

Interest Revenue =$2,500

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marshall27 [118]

Answer:

The remaining useful life of the asset is = 10 - 3 = 7 years

Explanation:

The straight line method of depreciation charges a constant depreciation expense through out the useful life of the asset. The formula for depreciation expense under this method is,

Depreciation expense = (Cost - Salvage value) / Estimated useful life of the asset

Plugging in the values for depreciation expense per year, cost and salvage value, we can calculate the total expected life of the asset.

5000 = (53000 - 3000) / estimated useful life of the asset

estimated useful life of the asset = 50000 / 5000

estimated useful life of the asset = 10 years

As the accumulated depreciation  balance is of 15000, the depreciation for 15000/5000 = 3years has been charged.

The remaining useful life of the asset is = 10 - 3 = 7 years

3 0
3 years ago
Craftwell Inc. pays a​ $0.75 dividend every quarter and will maintain this policy forever. What price should you pay for one sha
Advocard [28]

Answer:

Quarterly dividend (D) = $0.75

Annual return (Ke) = 10.5% = 0.105

Quarterly return = 0.105/4 = 0.02625

Current market price = <u>Quarterly dividend</u>

                                       Quarterly return

                                   =<u> $0.75</u>

                                       0.02625

                                  = $28.57

Explanation:

Current market price is the ratio of quarterly dividend paid divided by quarterly return.

3 0
3 years ago
Kevin has had a checking account for a month. As he reconciles his account, Kevin notices that the dates on his check register d
ale4655 [162]
I think the likely response from the bank is that probably the date when you issued the checks is not the same when the beneficiary cashed or deposited them.
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3 years ago
Customer retention is measured as the percentage of customers who return for more service. true false
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8 0
3 years ago
Schwan's Sales Enterprises of Marshall, Minnesota, manufactures and markets a full line of frozen foods in 49 states using door-
xxTIMURxx [149]

Available options are:

A. direct channel.

B. indirect channel.

C. facilitated channel.

D. customer-service channel.

E. truck jobber channel.

Answer:

A. Direct channel.

Explanation:

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