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slamgirl [31]
3 years ago
15

Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the

bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants.
Business
1 answer:
ivann1987 [24]3 years ago
3 0

Answer:

The journal entry is as follows:

Cash A/c Dr. $2,020,000

Discount on bonds payable A/c Dr. $59,216

             To Bonds payable                              $2,000,000

             To Paid in capital - stock warrants    $79,216

(To record the issuance of the bonds and warrants)

Workings:

Cash:

= 2,000 × $1,000 × 101%

= $2,020,000

Discount on bonds payable:

= 2,000,000 - 2,020,000 × (980 ÷ 1,020)

= $59,216

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The political business cycle refers to Group of answer choices the fact that about every four years some politician advocates gr
kirill [66]

Answer:

the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

Explanation:

A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.

Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).

Additionally, Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being such as Real GDP.

4 0
3 years ago
Banks only offer one type of saving alternative to their customers.<br>True or False​
sesenic [268]

Answer:

True

Explanation:

Banks use a type of check used to pay bills or make payments for which the money is guaranteed

4 0
3 years ago
If you wanted to compare the quantity of output of a country across time periods, which of the following would you use?
SOVA2 [1]

Answer:

the best way to compare the output in quantities over a period of times will be  (D) real GDP.

this is becasue real GDP is calculated by  adjusting for the changes in prices, therefore it does not contain any changes in the prices and only reflects the increase or decrease of the output quantities.

Explanation:

4 0
3 years ago
One column of numbers consists of 28, 42, and 14. When the digits of the
san4es73 [151]

Answer:

the correct answer is D

D. If the end result from the second column is not 3, then the sum of the

numbers in the first column equal to the sum of the numbers in the

second column.

Explanation:

since e are given the first column operation of the numbers. The operational process is repeated on the  number of the second column we can then conclude by choosing option <em>D if the end result from the second column is not 3, then the sum of the numbers in the first column is equal to the sum of the numbers in the </em>

<em>second column.</em>

3 0
3 years ago
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate
MAXImum [283]

Answer:

The nominal interest rate which the bank will offer is of 10.24%

Explanation:

according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:

\frac{1+r_n}{1+ \theta} -1 =r_e

(1+r_e)(1+ \theta) -1 = r_n

1.06*1.04-1 = 0.1024 = 10.24%

8 0
3 years ago
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