Answer:
$300
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)
= 6/12 * $600
= $300
The insurance expense on the annual income statement for the first year ended December 31 is $300.
Answer:
6%
Explanation:
Data provided as per question is as given below:-
Redeemed amount = $1,000
Sale value of Bond = $687.25
Number of year = 5
The computation of interest rate is as shown below:-
Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1
= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1
= (1.338) ^ (0.2) - 1
= 0.06
= 6%
answer:
competition, goodwill with trade partners, and importation of goods
