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3 years ago

Generally speaking the blank the risk the blank the potential return or loss

Business

1 answer:

ICE Princess25 [194]3 years ago

7 0

both the blanks would be higher

"generally speaking the higher the risk the higher the potential return or loss"

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Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500 For the next 5 years,

meriva

Answer:

Mark Johnson's investment would worth $ 13,223.95 at 8%,$ 12,338.93

at 5% and $ 11,784.66 at 3%

Explanation:

In calculating the worth of the investments at different rates of interest I adopted the future value approach as contained in the attached.

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5 0

3 years ago

question content areause this information for pierce company to answer the following question.on may 1, pierce company purchased

Marina86 [1]

On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest.

The journal entry Pierce will record on February 1 will include the total proceeds from the February 1 sale credit to Gain on Sale of Investments for $1,500

(this would also include a

Dr: Cash for $51,500

Cr: Investment-Stanton Company for $50,000)

Interest is the monetary fee for the privilege of borrowing money, usually expressed as an annual rate (APR). Interest is the amount a lender or financial institution receives for lending money.

In finance and economics, interest is a payment made by a borrower or deposit-taking financial institution to a lender or depositor in excess of the repayment of principal at a specified rate. It is different from a fee that a borrower can pay to a lender or a third party. Interest is usually given as an annual percentage of the loan amount. This percentage is called the interest rate on the loan. For example, if you deposit money in a savings account, the bank will pay you interest. Banks pay you to hold your money and use it to invest in other transactions.

Learn more about interest here

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5 0

2 years ago

From the following particulars of Purple New Co., prepare the bank reconciliation statement as on May 31, 2016.

juin [17]

Answer:

Explanation:

Bank reconciliation statement:

Cash account balance $3950

Less: Deposit in transit ($900)

Less: Bank service charges ($75)

Add: Interest added to the checking account by the bank $150

Add: Checks outstanding $960

Less: Check drawn incorrectly charged by the bank ($85) [150-65]

Adjusted balance $4,000

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3 years ago

Southland farm sold ten september futures contracts on wheat. Southland farm will:______.

Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

<h3>What is the payment?</h3>

Generally, the act or process of making a monetary contribution to someone or something, or of receiving a monetary contribution.

In conclusion, Wheat futures contracts were sold by Southland Farm for 10 contracts in September. September will be a busy month for the Southland farm, with both payments and deliveries.

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2 years ago

On January 1, 2017, Marin Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide t

kap26 [50]

Answer and Explanation:

The Journal entry is shown below:-

1. Debt Investment Dr, $344,260.74

To Cash $344,260.74

(Being cash paid is recorded)

2. Interest Receivable Dr, $38,400

To Debt Investment $3,973.93

To Interest Revenue $34,426.07

(Being interest received is recorded)

Fair Value Adjustment Dr, $1,713.19 ($342,000 -$340,286.81)

To Unrealized Holding Gain or Loss - Equity $1,713.19

(Being fair value adjustment is recorded)

3. Unrealized Holding Gain or Loss - Equity $7928.68

($335,915.49 - $329,700 + $1,713.19)

To Fair Value Adjustment 7,928.68

(Being unrealized loss or gain is recorded)

Working note

Book value of Interest Interest Amortization Book value

debt beginning Revenue Receivable (d = c - d) of debt

(a) b=(a × 10%) c at the end

($320,000 × 12%) (e - d)

$344,260.74 $34,426.07 $38,400 $3,973.93 $340,286.81

$340,286.81 $34,028.68 $38,400 $4,371.32 $335,915.49

8 0

3 years ago