Answer:
c) Catastrophe Bonds
Explanation:
These type of bonds are also known as the CAT bonds, and they are issued at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.
Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.
Hope this helps.
Thanks buddy.
Answer:
$27,000
Explanation:
Allowance for doubtful accounts before adjustment $15,000
Allowance provided for the month;
$800,000*1.5% $12,000
Closing balance for Doubtful Accounts $27,000
The allowance for doubtful accounts is provided on net sales basis therefore sales are multiplied with % of bad debt allowance given in question.
Answer:
a. debit to Interest Revenue for $2,500
Explanation:
Based on the information given we were told that Ban Company made a purchased of 50, 5% Waylan Company bonds for the amount of $50,500 which is a cash Interest that is payable annually which means that the annual interest payment would include a: DEBIT to Interest Revenue for $2,500 calculated as :
Interest Revenue=[(50 x $1,000)×5%]
Interest Revenue=$50,000×0.05
Interest Revenue =$2,500
Answer:
$9.18
Explanation:
Return on Investment is the actual profit / gain received on investment. In case of Investment in the stock the dividend and price appreciation is included in the return.
We will calculate the return on the investment in accounts.
Return = Dividend Received + ( Market Price of Stock - Initial price )
Return = Dividend Received + ( Market Price at the end of the year - Price at the beginning of the year )
Return = $0.85 + ( $76.45 - $68.12 )
Return = $0.85 + $8.33
Return = $9.18
Answer:
Dr Cash $92,811
Cr Notes Payables $92,811
(Being the proceeds and issuance of note
Explanation:
Annual rate = 12%
Interest for 9 months will be:
9/12 x 12% = 9%
So disbursal is 9% x $92,811
= $8,353
Principal (borrowed money) is $92,811.
The loan was disbursed on January 1. So it's only the proceeds from the loan which will be recorded on this date. Repayment will start at later date.
Therefore, The entry made by Guarantee Company on January 1 will be:
January 1
Dr Cash $92,811
Cr Notes Payables $92,811
(Being the proceeds and issuance of note)
