A because B only happens when lottery winners show the faces and stuff but most of them don’t and also C is wrong because if they thought about it thoroughly they wouldn’t be having financial problems
Answer:
The Journal entry is as follows:
Bonds payable A/c Dr. $375,000
To Discount on Bonds payable $40,000
To Gain on redemption of the bonds $15,000
To Cash $320,000
(To record the redemption of the bonds)
Workings:
Gain on redemption of the bonds:
= Bonds payable - Discount on Bonds payable - Cash
= $375,000 - $40,000 - $320,000
= $15,000
Answer:
Option (B) If the market rate of interest is 10%, the bonds will issue at a discount
Explanation:
Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.
<span>In regards to providing advisory services as opposed to providing transaction-based, this would be considered consultant servicing. This is due to the fact that there is an ongoing consultation occurring between the servicer and the client at hand, rather than single, one-off transactions.</span>
Answer:
$31,000
Explanation:
Data provided
Cost of goods sold = $29,000
Beginning inventory = $21,000
Ending inventory = $23,000
The computation of inventory purchased during the year is shown below:-
Cost of goods sold = Beginning inventory + Purchase inventory - Ending inventory
$29,000 = $21,000 + Purchase - $23,000
Purchase inventory during the year = $31,000
