Which activity is a consumer most likely perform?

HW2: ABC Co. acquired the $100,000, 6% bonds on 2001/12/31. Market price of the bonds: $102,723 (including brokerage fee of $153

weqwewe [10]

The preparation of the related journal entries for each period for ABC Co. is as follows:

<h3>Journal Entries:</h3>

2001/12/31 Debit Bonds Receivable $100,000

Debit Bonds Premium $2,723

Credit Cash $102,723

2002/12/31 Debit Cash $6,000

Credit Interest Revenue $5,136

Credit Amortization of Bonds Premium $864

2003/12/31 Debit Cash $6,000

Credit Interest Revenue $5,093

Credit Amortization of Bonds Premium $907

2004/9/30 Debit Cash $105,500

Credit Interest Revenue $3,786

Credit Amortization of Bonds Premium $952

Credit Bonds Receivable $100,000

Credit Realized Gain $762

<h3>Data and Calculations:</h3>

Periods Cash Interest Revenue Premium Carrying Value

Receipt Amortization

2001/12/31 102,723

2002/12/31 6,000 5,136 864 101,859

2003/12/31 6,000 5,093 907 100,952

2004/12/31 6,000 5,048 952 100,000

The fair market value of the bonds:

Periods Fair Market Value

2002/12/31 104,200

2003/12/31 103,000

2004/9/30 105,500

<h3>Journal Entries Analysis:</h3>

2001/12/31 Bonds Receivable $100,000 Bonds Premium $2,723 Cash $102,723

2002/12/31 Cash $6,000 Interest Revenue $5,136 Amortization of Bonds Premium $864

2003/12/31 Cash $6,000 Interest Revenue $5,093 Amortization of Bonds Premium $907

2004/9/30 Cash $105,500 Interest Revenue $3,786 Amortization of Bonds Premium $952 Bonds Receivable $100,000 Realized Gain $762

Learn more about recording bond transactions at brainly.com/question/16048929

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5 0

3 years ago

An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss o

KATRIN_1 [288]

Answer:

excess plan pay $5000

Explanation:

given data

each covering losses = $10,000

insured suffered a loss = $15,000

solution

we get here excess plan pay that is express as

excess plan pay = insured suffered a loss - each covering losses ....................1

put here value and we get excess plan pay that is

excess plan pay = $15,000 - $10,000

excess plan pay = $5,000

5 0

3 years ago

Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion

bazaltina [42]

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

8 0

2 years ago

In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization. ( T

scoray [572]

Answer:

<u>FALSE</u>

Explanation:

Note that, recruitment sources are the channels or sources from which qualified applicants for a position in a company are gotten. One such channel or source is through employees in the organisation who knows a qualified person outside the organisation to take up open positions.

Therefore, the Referrals are those that apply because they were prompted or referred by employees in the organisation to apply for vacancy.

7 0

3 years ago

ABC Corporation, has an issue of preferred stock outstanding that pays a $2.50 dividend every year in perpetuity. This stock iss

Liono4ka [1.6K]

Answer:

the required return on the preferred stock is 3.33%

Explanation:

The computation of the required return on the preferred stock is shown below:

= Dividend ÷ Selling price per share

= $2.50 ÷ $75

= 3.33%

Hence, the required return on the preferred stock is 3.33%

We simply applied the above formula

8 0

3 years ago