Answer:
Advertising a similar property can and does create interest in their property
Explanation:
In real estate agents need to effectively market properties in order to sell to consumers.
One way of doing this is by creating awareness in a given market about a particular property type.
When interest in a type of property is created it generates interest that will lead to more sales.
In the given scenario when Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that to capture a market they need to advertise even products that are similar.
As interest grows it will create a demand for that type of property
Answer and Explanation:
The journal entry are as follows
1. Interest expense $214,650
To Cash $214,650
(Being the first interest payment is recorded)
The computation is shown below
= $4,770,000 × 9% × 6 months ÷ 12 months
= $214,650
For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited
2. Cash $530,000
To Bond payable $530,000
(Being the cash sale of bond is recorded)
For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable
Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation:
Assets
=
Liabilities
+
Equity
Assets=Liabilities+Equity
With a double entry system, credits are offset by debits in a general ledger or T-account.
So debit is the answer
Answer:
a. $58,800
b. $57,820
Explanation:
Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.
a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.
b. Discount value
= $58,800 × 10% × 60/360
= $980
Proceeds
= Face/par value of the note - Discount value of the note
= $58,800 - $980
= $57,820
Answer:
<u>Real Property </u>
Explanation:
Capital markets refer to the market which trades in long term securities whose maturity is more than an year. The instruments traded in capital markets are usually stocks and bonds.
In private equity real estate, public and private investments are pooled together and invested in the real estate property markets. So here the underlying asset whose price fluctuates is property. If property prices soar, the investors stand to gain.
This kind of investment involves high risk but is also capable of generating a higher return as greater the risk involved, greater the return.
