Margot company purchases $100,000 face amount, 6% semi-annual bonds for $110,000 when the market interest rate is 5%. margot should recognize the following interest revenue for the first 6-month period:
$3,000
Rationale:
$100,000 x (6% x 6/12)
The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
The amount that a lender charges a borrower for the use of assets on top of the principal is known as the interest rate.
The money generated from a deposit account at a bank or credit union is likewise subject to an interest rate.
Simple interest is used in most mortgages. Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
The interest rate will be lower for a borrower who the lender deems to be low risk. The interest rate on a loan will be greater if it is thought to be high risk.
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Answer:
C) standing to sue
Explanation:
standing to sue -
In terms of law , it is the requirement where a person brings a suit to be the proper party to request the adjudication of an issue .
This test is put when a party had a personal stake during the outcome of a controversy presented .
Hence from the data of the question , the correct answer for the statement given is , C) standing to sue
The definition in my own words are:
- Cash Basis of Accounting: is type of accounting that that makes use of revenues and expenses at the time cash is received.
- Accrual Basis of Accounting: The accrual basis of accounting focus on recording revenues .
- Matching Principle: can be regarded as accounting concept that focus on companies report expenses .
- Time-Period Principle: is one that a business should report the states that financial results of its activities .
- Accounting Period: serves as the period of time that is used for accounting functions, this can be a fiscal year.
<h3>What is accounting?</h3>
Accounting serves as the process which involves the recording as well as summarizing business and financial transactions.
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Answer:
The calculations are shown below:
Explanation:
The computation is shown below:
As we know that
Inventory turnover ratio is
= Cost of goods sold ÷ Average inventory
So
For year 2015, it is
= $1,270 ÷ $210
= 6.05 times
For year 2014, it is
= $1,560 ÷ $220
= 7.09 times
For year 2013, it is
= $2,000 ÷ $380
= 7.14 times
1-b Average days to sell inventory is computed by considering the
= Total number of days in a year ÷ inventory turnover ratio
So
For year 2015, it is
= 365 ÷ 6.05
= 60.33 days
For year 2014, it is
= 365 ÷ 7.09
= 51.48 days
For year 2013, it is
= 365 ÷ 7.14
= 51.12 days
2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015
Answer:
If the products are sold seperately they would sell for $100,000:
Software $70,000 = 70%
Technical Support $30,000 = 30%
Sarjit Systems sold the software for $80,000
Software 70% of 80,000 = $56,000
Technical Support 30% of 80,000 = $24,000
We will record technical support as deferred revenue since the customer pays for the support upfront before receiving the service.
The journal entry would be:
Account Title Debit Credit
Cash 80,000
Sales Revenue 56,000
Deferred Revenue 24,000
