Answer:
July 1 Bonds Payable 400000 Dr
Premium on Bonds Payable 11200 Dr
Cash 408000 Cr
Gain on Redemption 3200 Cr
Explanation:
The data provided for the carrying value and other amounts is of 1st July thus the statement regarding the interest payment is irrelevant.
The bonds are redeemed at 408000 which is less than their carrying value which is 411200 ( face value of 400000 and premium of 11200 ). Thus, we can conclude that there is a gain on early redemption.
The gain on redemption = 411200 - 408000 = 3200
The entry for this event will require to close the bond payable and related premium account by debiting them and crediting the cash and gain account.
Answer:
False
Explanation:
Shadow banking systems includes financial institutions that are not regulated by the government or operate outside government-regulated banking systems.
Shadow banks channel money from savers to borrowers outside the regulated banking system.
Commercial and community banks are regulated by the government, therefore they are not part of the shadow banking system.
Contractionary monetary policy entails increasing the money supply, increasinginterest rates, and decreasing aggregate demand.
<h3>What is contractionary monetary policy?</h3>
A contractionary monetary policy serves as a type of monetary policy which do bring about reduction in the the rate of monetary expansion to fight inflation.
Therefore, Contractionary monetary policy entails increasing the money supply.
learn more about contractionary monetary policy at:
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Answer:
The options are given below:
A. revenue cycle.
B. expenditure cycle.
C. financing cycle.
D. production cycle.
The correct option is A
Explanation:
The revenue cycle is a term that is used in accounting and business which describes the journey pathway a product or service will take from when it is produced to when it is sold.
The revenue cycle starts when an organization delivers a product or provides a service, and ends when the customer makes payment for the product or service.
In the scenario above, we can see that John Pablo's responsibilities are part of the company's revenue cycle because updates accounts receivable based on sales orders and remittances, and sales of products are a part of the revenue cycle of a business organization.
Answer:
$17 million
Explanation:
In order to compute the cost of the goodwill, first, we have to compute the fair value of the net asset which is shown below:
The fair value of net asset = The market value of Lyn Star Overnight assets - the market value of Lyn Star Overnight liabilities
= $72 million - $23 million
= $49 million
And, the purchase value of Lyn Star Overnight is $66 million
So, the goodwill would be
= $66 million - $49 million
= $17 million
