Answer: Please refer to Explanation
Explanation:
DR Bonds Payable ............... $ 72,100
DR Premium on Bonds Payable (74,950 - 72,100) ...... $2,850
CR Cash ...................................... $70,100
CR Gain on Discharge of Bonds ($74,950 - $70,100) $4,850
(To record retirement of premium bond before time)
If you need any clarification do comment.
Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.
Explanation:
A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.
Options contracts come in 100s so;
Acquisition cost = (50 - 2) * 100
= 48 * 100
= $4,800.
The date of acquisition is the day the put was exercised.
Answer:
c. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant
CORRECT The interest will decrease while principal increase leaving a net effect of zero through the life of the loan
Explanation:
a. The outstanding balance declines at a slower rate in the later years of the loan's life
FALSE the principal decreases at a higher rate in the lather years as the interest component decreases.
b. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years
FALSE to know this we need to know the rate
d. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant
FALSE as a portion of the principal is being paid, the interest component decreases over time
e. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
FALSE the porportion to pay the principal increase through time.
Answer:
Step 1: Include the date.
Step 2: Name the recipient.
Step 3: Fill in the amount with numerals.
Step 4: Write out the amount in words.
Step 5: Say what it's for.
Step 6: Sign your name.
