Answer:
The correct answer is B
Explanation:
The journal entry to record the sale of the subscription is as:
Cash A/c.............................................................Dr $600,000
To Unearned Subscription Revenue A/c..........Cr $600,000
As company made a sale of the subscription, so cash is received from sale therefore any increase in asset is debited. So, the cash account is debited. And the unearned subscription revenue is credited because cash is received against subscription sale.
There is an inflationary gap
I hope that helped
Answer: $20,478.78
Explanation:
In 14 years the investment will be,
Gold
10,000/2 = 5000
Then use the compound interest formula
5000 * (1+0.07)^ 14 = $12,892.67
For Certificates of Deposits.
Use the Compound interest formula
Rate and period are in years. Convert to semi annual basis.
3%/ 2 = 1.5%
14 * 2 = 28 periods
= 5000 ( 1+ 0.015) ^ 28
= $7,586.11
Add both
=$12,892.67 + $7,586.11
= $20,478.78