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Semmy [17]
3 years ago
7

When recording the payment of interest using the effective-interest method, the entry will include a ______ to Discount on bonds

payable in the amount of the difference between the cash payment based on the ______ interest rate and interest expense based on the ______ interest rate. debit; stated; market credit; stated; market debt; market; stated credit; market; stated
Business
1 answer:
goldfiish [28.3K]3 years ago
6 0

Answer:Debit , market, stated.

Explanation: An actual payment of interest from a payables account is always entered as a debit in that account ledger. Then when calculating the effective interest : it is the the difference between the cash payment based on the market interest rate and interest expense based on the stated interest rate.

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45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price
kakasveta [241]

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

8 0
3 years ago
When electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. the company found out, howe
Inessa [10]
<span>Electra experienced in this case the effect of legal, regulatory differences between the different markets in which they wished to introduce their new product. By choosing to use the lower motor speed, they eliminated the need to redesign the product for the various markets. Instead, one product could be produced and distributed worldwide.</span>
3 0
3 years ago
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market intere
Lapatulllka [165]

Answer:

Debit Interest Expense $440.64, Debit Premium on Bonds Payable $159.36 and Credit Cash $600

Explanation:

Amount paid in cash = $10,000 * 6% = $600

Interest expense = $11,016 * 4% = $440.64

Amortization of premium on bonds payable = Amount paid in cash - Interest expense

Amortization of premium on bonds payable = $600  - $440.64

Amortization of premium on bonds payable = $159.36.

Debit Interest Expense $440.64

Debit Premium on Bonds Payable $159.36

Credit Cash $600

5 0
3 years ago
Drag each label to the correct location on the image.
muminat

Answer: low invol- Georgina Megan Dina

High invol Laura Charles jonny

Explanation:

5 0
1 year ago
Jack enters into a contract with Jill’s Farm to provide water for Jill’s irrigation needs. Jack fails to deliver. Jill initiates
ElenaW [278]

Answer:

Plaintiff

Explanation:

The Plaintiff is the person who brings the case against the another in the court of the law.

On the other hand, the defendant is the person who defends himself/herself against the suit filed by Plaintiff in the court of the law.

In the given case, Jill has filed the suit against Jack in the court of the law which means that Jill is the Plaintiff.

4 0
3 years ago
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