Answer:
a debit to interest expense and premium on bonds payable and a credit to cash
Explanation:
Based on the information given The Appropriate journal entry to record the AMORTIZATION OF A PREMIUM ON BONDS PAYABLE ON AN INTEREST PAYMENT DATE will include: a DEBIT TO INTEREST EXPENSE and PREMIUM ON BONDS PAYABLE and a CREDIT TO CASH
Debit Interest expense
Debit Premium on bonds payable
Credit cash
(To record the amortization of premium on bonds payable on an interest payment date)
Answer:
Option (d) is correct.
Explanation:
When the supply of loanable funds increases and this change in loanable funds shifts the supply curve of loanable funds rightwards then as a result the equilibrium interest falls and the quantity of loanable funds increases.
In this situation, the supply of loanable funds exceeds the demand for loanable funds, so the financial institutions would provide funds at a lower interest rate to the borrowers.
Fall in the interest rate would induce borrowers to take loan at a cheaper rate.
Answer:D. Bond interest expenses is deductible for tax purposes while dividend paid on stocks are not.
Explanation:
This stand as an advantage for bonds where tax is only deductible after meeting the total interest expenses.
What is fascinating about his story is that he invented the stethoscope because he was shy. At that time doctors generally listened to heartbeats by placing an ear directly on a patient’s chest. When he was examining a young woman complaining of heart problems, he thought it was improper to place his ear on her chest, especially as she was overweight.
