Answer:
Bond Interest Expense $14,200; credit Cash $14,000; credit Discount on Bonds Payable $200.
Explanation:
The journal entry is shown below:
Bond interest expense $14,200
To Discount on bond payable $14,000
To Cash $200
(Being the first interest payment is made for cash is recorded)
The computation is shown below:
= $400,000 × 7% × 6 months ÷ 12 months
= $14,000
The discount on bond payable is
= $400,000 - $396,000
= $4,000
This $4,000 would be charged for 10 years So for one year it is 200 in case of semi annual basis
As we debited the interest expense as it increased the expenses and at the same time it also decrease the cash balance so it would be credited along with it the discount on bond payable is credited
Complete Question
Annual rent $ 7,380
Insurance 145
Security deposit 650
Annual mortgage payments $9,800 ($9,575 is interest)
Property taxes 1,780
Insurance/maintenance 1,050
Down payment/closing costs 4,500 Growth in equity 225
Estimated annual appreciation 1,700
Assume an after-tax savings interest rate of 7 percent and a tax rate of 28 percent.
(a) Calculate the total rental cost and total buying cost.
Answer:
Explanation:
(a)Rental Costs
Buying Costs $7,380
Rent $9,800
The following calculations were made:
Interest lost on security deposit
= Security deposit × 7%
= $650 × 0.07 = $45.5
Interest lost on down payment and closing cost
= Down payment × 7%
= $4,500 × 0.07 = $315
Tax savings for mortgage interest =
Interest × 28%
$9,575 × 0.28 = $2,681
Tax savings for property taxes =
= Property taxes × 28%
$1,780 × 0.28 = $498
The statement is false.
Void and voidable contracts are one and the same. Exculpatory clauses are typically considered void towards public coverage. Covenants not to compete are commonly taken into consideration void as against public coverage.
A bilateral contract is a contract in which each party alternate guarantees to carry out. One birthday party's promise serves as consideration for the promise of the other. As a result, each party is an obligor of that birthday celebration's own promise and an obligee of the opposite's promise.
A contract wherein the events trade a promise for a promise is referred to as a Bilateral contract, whereas a contract wherein one birthday party gives a promise and the other birthday celebration performs an act is known as a Unilateral settlement. these legally enforceable promises can be in writing or oral.
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Take the factors considered by earned value analysis and subtract those considered by the project S-curves. the factor(s) you have remaining are Performances.
Earned Value Analysis: Through the utilization of earned value analysis (EVA), a project manager is in a position to measure the particular amount of labor completed on a project additionally to easily review cost and schedule information. EVA offers a mechanism that allows the project to be evaluated by the quantity of progress made. This is known as Earned Value Analysis.
Factors considered by earned value analysis and subtract those considered by the project S-curves. the factor(s) you have remaining are Performances.
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C) there are not enough resources to produce all of the good and services that everyone wants.
