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dybincka [34]
3 years ago
7

If total liabilities decreased by $26,185 during a period of time and owner's equity increased by $33,571 during the same period

, the amount and direction (increase or decrease) of the period's change in total assets would be a a.$7,386 increase b.$26,185 increase c.$7,386 decrease d.$26,185 decrease
Business
1 answer:
matrenka [14]3 years ago
4 0

Answer:

Option (a) $7,386 increase

Explanation:

Data provided in the question:

Change in total liabilities = - $26,185 [negative sign depicts decrease]

Change in equity = $33,571

Now,

Total Assets = Total Liabilities + Total Equity

Thus,

Change in total assets = Change in total Liabilities + Change in total Equity

or

Change in total assets = - $26,185 + $33,571

= $7,386 [positive value depicts increase]

Hence,

Option (a) $7,386 increase

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Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in f
Alexeev081 [22]

Answer:

issue $700,000 in 5 year bonds that pay 13% semiannual coupons (coupon = $45,500)

market interest rate 12%, so bonds will be sold at a premium

1) What was the issue price on January 1 of this year?

issue price = present value of face value + present value of interest payments

  • present value of face value = $700,000 / (1 + 6%)¹⁰ = $390,876
  • present value of annuity = $45,500 x {1 - [1 / (1 + 6%)¹⁰]} / 6% = $334,884

issue price = $390,876 + $334,884 = $725,760

journal entry to record issuance of the bonds:

Dr Cash 725,760

    Cr Bonds payable 700,000

    Cr Premium on bonds payable 25,760

2) What amount of interest expense should be recorded on June 30 and December 31 of this year?

amortization of bond premium June 30 = ($725,760 x 6%) - ($700,000 x 6.5%) = $43,546 - $45,500 = -$1,954

Journal entry June 30th, first coupon payment:

Dr Interest expense 43,546

Dr Premium on bonds payable 1,954

    Cr Cash 45,500

amortization of bond premium December 31 = ($727,714 x 6%) - ($700,000 x 6.5%) = $43,663 - $45,500 = -$1,837

Journal entry December 31st, second coupon payment:

Dr Interest expense 43,663

Dr Premium on bonds payable 1,837

    Cr Cash 45,500

3) What amount of cash should be paid to investors June 30 and December 31 of this year?

$45,500 per coupon payment

4) What is the book value of the bonds on June 30 and December 31 of this year?

Book value on June 30th:

Bonds payable $700,000

Premium on bonds payable $23,806

Book value on December 31st:

Bonds payable $700,000

Premium on bonds payable $21,969

7 0
2 years ago
Name and explain money notes<br>​
Alborosie

Answer:

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.[4][5] Any item or verifiable record that fulfils these functions can be considered as money.

6 0
2 years ago
Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grow
Katyanochek1 [597]

Answer:

option (B) 35 years

Explanation:

Given:

Real per capita GDP of Sweden = $50,000

Real per capita GDP of Chile = $25,000

Growth rate of Sweden = 2%

Growth rate of Chile = 4%

As per the Rule of 70, the economy's GDP doubles in \frac{\textup{70}}{\textup{Growth rate}}

Therefore,

The GDP of Sweden will double in = \frac{\textup{70}}{\textup{2}} = 35 years

and,

Chile will double in \frac{\textup{70}}{\textup{4}} = 17.5 years

Therefore,

in 35 years the GDP of Sweden will be $100,000

and,

In 35 years the GDP of Chile will also be ($50,000 in 17.5 years and $100,000 in next 17.5 years) = $100,000

Therefore,

The real GDP per capita in the two nations to converge in 35 years

Hence,

The correct answer is option (B) 35 years

8 0
2 years ago
The following materials standards have been established for a particular product: Standard labor- hour per unit of output 3.3 ho
wlad13 [49]

Answer:

The labor rate variance for the month = $1890

Explanation:

Given values:

Standard labor hour per unit = 3.3 hours

Standard labor rate =  $16.15 per hour

Actual hours worked = 6,300

Actual total labor cost =  $103,635

Actual output = 2,000 units

Now, we calculate the labor rate variance with the help of given information. Below is the calculation of Labor rate variance.

Labor rate variance = ( Actual labor cost) – (Standard rate × Actual hours)

= 103635 – (16.15 × 6,300)

= $1890

4 0
3 years ago
When using variable costing, costs are grouped by each of the following (select all answers that are applicable):___________a) f
pashok25 [27]

Answer:

<h2>Where THE OPTIONS ????</h2>
7 0
3 years ago
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