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4 years ago

The balance in Unamortized Discount on Bonds Payable

Business

1 answer:

Irina-Kira [14]4 years ago

4 0

Answer:

Correct option is (a)

Explanation:

Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.

Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.

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05) Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What

Kay [80]

Answer:

Explanation:

a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.

This would: make output to remain unchanged, real interest to increase and current price level to increase as well.

b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.

C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.

d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.

4 0

3 years ago

ABC company received a special order for 5000 untis at a sales price of 10 per unit. ABC normally sells these for 12 each. Each

slamgirl [31]

Answer:

The increase in pre-tax income 20,000

Explanation:

The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.

The sale price for the special order=10

the variable cost per unit=6

contribution margin per unit from special order=10-6=4

The increase in pre-tax income=total contribution margin from special order

The increase in pre-tax income=5000*4

The increase in pre-tax income=20,000

Hence, accepting the order is worthwhile.

4 0

3 years ago

At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at

Korvikt [17]

Average FIFO LIFO Specific

Identification

Sales $ 3,840 $3,840 $3,840 $ 3,840

Less: Cost of 2,256 2,040 2,560 2,060

Goods Sold

Gross Profit $ 1,584 $1,800 $1,280 $ 1,780

The income statement shows a company's expenses, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time period.

The balance sheet and income statement represent important information regarding the financial performance and health of a business. An income statement assesses the profit or loss of a business over a period of time, whereas a balance sheet shows the financial position of the business at a specific point in time.

The income statement presents revenue, expenses, and net income. The components of the income statement include revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.

Learn more about Income statements here brainly.com/question/24498019

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8 0

1 year ago

The advertising manager and sales supervisor at greenwalt advertising perform related job functions and report to the _____ mana

viktelen [127]

<span>It is reasonable to assume that sales supervisor reports to a sales manager, who would report to the general manager. The advertising manager would report to this same general manager.</span>

5 0

3 years ago

On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $36,000. The cab has an expected salvage value of $2,00

Natasha_Volkova [10]

Answer:

Explanation:

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)

year 2 = (48,000 / 200,000) x (36,000 - 2000) = 8160

book value = cost of asset - accumulated depreciation

accumulated depreciation = year 1 + year 2's depreciation

year 1 = (45,000 / 200,000) x (36,000 - 2000) =

- 200,000 - (7650 + 8160) =

3 0

3 years ago