Answer:
debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.
Explanation:
The journal entry is shown below:
Salaries and Wages Expense A/c Dr $24,000
To Salaries and Wages Payable $24,000
(Being salary and wages is adjusted)
The computation is shown below:
Five day salary = $30,000
Per day salary = $30,000 ÷ 5 days = $6,000
Now Monday to Thursday salary i.e 4 days salary = $6,000 × 4 days = $24,000
Answer:
1. sufficient
2. performed; HDC; holder
Explanation:
The holder in due course which is popularly referred to as the HDC is a person who has been given an instrument that is negotiable and not overdue in any form. The instrument has also been given in good faith which shows that the instrument is in good working condition. The HDC is eligible to purchase the instrument in a value for value exchange form.
Answer:
concept maps work because they <u>visually demonstrate relationships</u>
Answer:
Price of the Bond is $868.82
Explanation:
Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]
Whereas
C = coupon payment = $110.00 (Par Value x Coupon Rate)
n = number of years = 7
r = market rate, or required yield = 14% = 0.14
P = value at maturity, or par value = $1,000
Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]
Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]
Price of the Bond = $481.0+$387.82
Price of the Bond = $868.82
Answer:
A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.
The Fisher effect states that the nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Thus, the real interest rate in a particular country's economy equals the nominal interest rate minus the expected inflation rate.
All things being equal (Ceteris paribus), the expected inflation rate of a country's economy would eventually cause an equal rise in the interest rate that the deposits of the country's currency can offer. Also, as inflation increases, the real interest rate falls or decreases.
