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LUCKY_DIMON [66]
3 years ago
12

On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000. The bonds are sold for $46,000. The bonds pay

interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $5,000 b. $5,200 c. $5,800 d. $5,400
Business
1 answer:
Darina [25.2K]3 years ago
4 0

Answer:

d. $5,400

Explanation:

The computation of the interest expense is shown below:

As

Interest Expense is

= $50,000 × 10%

= $5,000

And,

Amortization Expense is

= ($50,000 - $46,000) ÷ 10 years

= $400

So,

Total Bond Interest Expense is

= Interest expense + amortization expense

= $5,000 + $400

= $5,400

We simply added the interest expense and the amortization expense so that the total bond interest expense could come

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Which of the following is an example of a strategic action?
Pavlova-9 [17]

Answer:

Option D. Entry into the European market by Home Depot.

Explanation:

The reason is that the strategic actions are long term actions and are market based moves which bounds the organizational resources for implementation and are also very difficult to reverse.

So here use of coupons, fare increases and two for one offers are easily reversible, requires fewer organizations resources for implementation and short term decisions which means these are tactical actions.

Whereas the decision to enter european market by Home Depot is long term decision, bounds organization resources for implementation and is very difficult to implement or reverse the actions once taken, so it is strategical action of Home Depot.

8 0
3 years ago
Suppose the Japanese economy has been experiencing slow growth. As a result, the Prime Minister, who thinks John Maynard Keynes
snow_tiger [21]

Answer: The recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen

Explanation:

From the question, we are informed that GDP gap of 1 trillion yen and the marginal propensity to consume (MPC) is 0.60. Also, to close the GDP gap, the prime minister has decided to increase government spending. This means that there will be a recessionary gap because the actual GDP will be less than the potential GDP.

Fir the economy to be brought to its potential GDP, the spending of the government will give a stimulus to the economy. Since MPC is 0.6, the multiplier will be:

= 1/1-MPC

= 1/1 - 0.6

= 1/0.4

= 2.5

The government spending will then increase in order to close the recessionary gap as:

∆Y = ∆G × Multiplier

100 = ∆G × 2.5

∆G = 100/2.5

∆G = 40

Therefore, the recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen.

4 0
3 years ago
The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. The closer w
qaws [65]

Answer:

The correct answer is False.

Explanation:

The amortization operation consists of regularly distributing the repayment of the principal (C0), together with the interest accrued throughout the life of the loan. The periodic payments made by the borrower are therefore intended to reimburse, extinguish or amortize the initial capital. This justifies the name of the depreciation transaction and the depreciation terms that are usually assigned to these payments.

8 0
3 years ago
Which of the following account groups are temporary accounts?
victus00 [196]

Answer: d. Rent Revenue, Fees Earned, Miscellaneous Expense

Explanation:

Temporary accounts are also referred to as nominal accounts and they are the accounts that are closed when the year ends and began afresh the following accounting period and they basically relates to fees, expenses and gains.

From the options above, the answer will be option D "Rent Revenue, Fees Earned, Miscellaneous Expense"

8 0
3 years ago
Read 2 more answers
You are an RR at a firm and one of your customers calls you up and informs you that she wishes to exercise a long listed option
MAVERICK [17]

Answer:

The correct answer is:  The firm would present the order to the Options Clearing Corporation.

Explanation:

The Options Clearing Corporation or OCC works under the Securities and Exchange Commission (<em>SEC</em>) and acts as a guarantor and the issuer of options and futures contracts. The OCC is also in charge of clearing transactions for stock indexes, interest rate composites, and foreign currencies.

7 0
3 years ago
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