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3 years ago

How do loans and interest rates impact businesses?

1 answer:

4 0

Loans can be a good and bad thing if you either need the money to get more money or to pay off a mortgage but it can be bad since the bank takes half of the remaining profits you generate. Interests rates can be bad if you dont pay off loans in time.

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Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time

Gnom [1K]

Answer:

since Percy Company's owns 80% of Song Company's stocks, we must use the equity method to record its investment in Song Company

Beginning 2014, investment in Song Company

Dr Investment in Song Company 406,000

Cr Cash 406,000

2014, to record Song's net income

Dr Investment in Song Company 48,480

Cr Investment revenue 48,480

2015, to record Song's net income

Dr Investment in Song Company 43,120

Cr Investment revenue 43,120

2016, to record Song's net loss

Dr Loss on investment 45,760

Cr Investment in Song Company 45,760

2014, to record Song's dividends

Dr Cash 19,040

Cr Investment in Song Company 19,040

2015, to record Song's dividends

Dr Cash 40,480

Cr Investment in Song Company 40,480

2016, to record Song's dividends

Dr Cash 29,040

Cr Investment in Song Company 29,040

5 0

3 years ago

In economics, we cannot accurately predict what individuals will do, but only what people in general will do. Why?

Dima020 [189]

Create something to make money of off

6 0

4 years ago

According to the tort doctrine of ________, any time an employee is liable for tortious acts in the scope of employment, the emp

My name is Ann [436]

According to the tort doctrine of <u>respondeat superior</u> , any time an employee is liable for tortious acts in the scope of employment,

<h3>What is tortious acts?</h3>

Tortious acts is an act that occur when a person is harm as a result of another action which inturn lead to legal liability for the person who committed the act.

Hence, Respondeat superior stated that an when an employee is liable for committing tortious acts the employer is as well liable for the same act.

Learn more about Tortious acts here:

brainly.com/question/15570864

#SPJ1

7 0

2 years ago

Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds

ahrayia [7]

Answer and Explanation:

a. The Journal entry is shown below:-

1. Cash Dr, $32,433,150

To Premium on Bonds Payable $2,433,150

To Bonds Payable $30,000,000

(Being Sale of bonds is recorded)

2. Interest Expense Dr, $1,297,326

($32,433,150 × 4%)

Premium on Bonds Payable Dr, $202,674

To Cash $1,500,000

($30,000,000 × 5%)

(Being First semiannual interest payment, including amortization of premium is recorded)

3. Interest Expense Dr, $1,289,219

($32,433,150 - $202,674) × 4%

Premium on Bonds Payable Dr, $210,781

To Cash $1,500,000

(Being second semiannual interest payment, including amortization of premium is recorded)

($30,000,000 × 5%)

b. Annual interest paid $3,000,000

Less: Premium amortized $364,094

($202,674 + $161,420)

Interest expense for first year $2,635,906

7 0

3 years ago

If you get opportunities to have a training which one do you want to choose why

lesya692 [45]

Answer:

water proof

Explanation:

8 0

3 years ago