Answer:
Date Account Title Debit Credit
Dec 11, 2018 Interest receivable $20,600
Interest revenue $20,600
Explanation:
The interest receivable on December 31, 2018 would be based on the lease amount at the end of the year which will be the present value of the lease less the lease amount paid for the year:
Lease amount = 240,000 - 34,000
= $206,000
Interest receivable = 206,000 * 10%
= $20,600
Answer:
$997
Explanation:
The price of the Bond is its Present Value. thus we need to discount the future cash flows (payments and capital repayments) to find the price as follows.
<em>Note : I am using a financial calculator here</em>
FV = $1,000
P/Yr = 2
N = 1 x 2 = 2
PMT = ($1,000 x 5.08 %) ÷ 2 = $25.40
YTM = 5.37 %
PV = ?
Conclusion
Assuming the Bond Matures in 1 year, the bond's price is $997
The U.S. bond is a Eurobond and the Japanese bond is termed a foreign bond.
Answer: Option C
<u>Explanation:</u>
The bond that has been issued by the firm in the United States of America is denominated in the US dollars only. But it is sold in Japan. So this bond is a Euro bond.
But since the bond issued by the Japanese firm is denominated in pounds. And this pound denominated bond is also sold in the United Kingdom, therefore this bond is a foreign bond and not a euro bond.
Answer:
$2,000 favorable
Explanation:
The computation is shown below:
= Actual overhead cost - budgeted flexible costs
where,
Actual overhead cost = $250,000
And, the budgeted flexible cost would be
= Number of units produced × variable cost per unit + fixed cost
= 9,000 units × $8 + $180,000
= $72,000 + $180,000
= $252,000
The variable cost per unit would be
= $64,000 ÷ 8,000 units
= $8
So, the difference would be
= $250,000 - $252,000
= $2,000 favorable
Answer:
$8,400
Explanation:
total commission = $300,000 x 8% = $24,000
50% co-brokerage split = $24,000 x 50% = $12,000
Walt's commission = $12,000 x 70% = $8,400
the 70% commission split between Walt and his broker means that Walt keeps 70% of the commission and the broker keeps 30%.
total commission is split between the two firms because the Walt's listing was sold by another firm.
