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Svetach [21]
3 years ago
9

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

      To Premium on bonds payable A/c XXXXX

      To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

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Answer:

cannot pay or charge interest.

Explanation:

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1. they prohibit usury : Usury is charging interest on loans

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3. Investments in items that are not allowed in the Qur'an e.g. alcohol

Islamic bank use equity participation to make money. When an  Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares

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Definition of net worth ?
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Answer:

Net worth is the measure of the wealth of an entity, person, or corporation, as well as sectors and countries. Simply, net worth is defined as the difference between assets and liabilities. It is an important metric to gauge a company's health and it provides a snapshot of the firm's current financial position.

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Answer:

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Explanation:

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CFO; CEO</span>
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