No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.
We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.
There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.
Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
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Answer:
36 billion
Explanation:
The GDP can be calculated using the income approach in which the output of a country is equal to the total income people receive in that country.
GDP= Compensation of employees + Net interest + Rental income + Corporate profits
From this formula, you can isolate the compensation of employees:
Compensation of employees= GDP-Net interest - Rental income - Corporate profits
Compensation of employees= $65-$15-$7-$7
Compensation of employees= $65-$29
Compensation of employees= $36
The wages during 2009 in Sildavida were: $36 billion.
Aldi!!! Personal preference due to the organization.
Answer:
Over-applied by $3,842
Explanation:
If<em>, Applied Overheads > Actual Overheads, overheads have been overapplied.</em>
<em>and</em>
<em>Since, Applied Overheads < Actual Overheads, overheads have been under- applied.</em>
Applied Overheads = Predetermined rate x Actual Activity
where,
Predetermined rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined rate = $ 157,050 ÷ 4,500
= $34.90
Applied Overheads = $34.90 x 4,580 = $159,842
<em>Since, Applied Overheads > Actual Overheads, overheads have been overapplied.</em>
Over-applied overheads = $159,842 - $ 156,000 = $3,842
