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3 years ago

(30 Points) Give some examples of how government spending benefits people.

2 answers:

6 0

Government expenditures enter the economy through the compensation of public employees, purchases of goods and services from the private sector, and through transfer payments to individuals for social security, welfare, and other needs. These expenditures benefit industries, communities, and individual citizen

ra1l [238]3 years ago

4 0

Answer:

Government spending could be used on public schools to help educaiton, thus influencing and supporting the benefits of the people.

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On January 1, 2020, Oriole Company purchased 12% bonds, having a maturity value of $320,000 for $344,260.74. The bonds provide t

n200080 [17]

Answer:

face value $320,000, coupon rate 12%

current market value $344,260.74, effective interest rate 10%

maturity in 5 years, coupon paid yearly

(a) Prepare the journal entry at the date of the bond purchase.

Dr Investment in bonds (AFS) 320,000

Dr Premium on investment in bonds (AFS) 24,260.74

Cr Cash 344,260.74

(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.

unamortized premium = ($320,000 x 12%) - ($344,260.74 x 10%) = $38,400 - $34,426.07 = $3,973.93

Journal entry to record accrued interests:

Dr Interest receivable - investment in bonds (AFS) 38,400

Cr Interest revenue 34,426.07

Cr Premium on investment in bonds (AFS) 3,973.93

Journal entry to record recognition of fair value 2020

fair market value $342,000 - $340,286.81 (carrying value) = $1,713.19

Dr Fair value adjustment - equity 1,713.19

Cr Unrealized gain on investment in bonds bonds (AFS) 1,713.19

unamortized premium = ($320,000 x 12%) - ($340,286.81 x 10%) = $38,400 - $34,028.68 = $4,371.32

fair market value $329,700 - carrying value $335,915.49 = -$6,215.49

Dr Unrealized loss on investment in bonds bonds (AFS) 6,215.49

Cr Fair value adjustment - equity 6,215.49

6 0

3 years ago

When a $10 check written on the first national bank of chicago is deposited in an account at citibank, then.

Fynjy0 [20]

Answer:

A. the liabilities of the First National Bank decrease by $10.

Explanation:

5 0

2 years ago

Sweet Treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. T

Phantasy [73]

Answer:

Cost of equity= 8.0%

Explanation:

<em>Cost of equity can be ascertained using the dividend valuation model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.</em>

Cost of equity (Ke) =( Do( 1+g)/P ) + g

g - 2.2%, P - 36.72, D - 2.18

Ke = (2.18 ×(1+0.022)) /38.72 + 0.022 ) × 100

= 0.07954 × 100

= 8.0%

Cost of equity = 8.0%

4 0

3 years ago

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $169,000 Credit sale

BARSIC [14]

Answer:

$5,750

Explanation:

The computation of the balance in the allowance for doubtful accounts after bad debt expense is shown below:

= Account receivable × estimated percentage - credit balance of Allowance for doubtful accounts

= $295,000 × 0.03 - $3,100

= $8,850 - $3,100

= $5,750

By deducting the credit balance from the estimated amount we can find out the balance in the allowance for doubtful accounts

4 0

3 years ago

why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

Archy [21]

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.

5 0

4 years ago