No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.
We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.
There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.
Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
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Answer:
Explanation:
a. Provide the journal entry for the vacation pay
Employees earned vacation pay of $39,500 for the period.
Debit Credit
Vacation pay expense A/C $39,500
Vacation payable A/C $39,500
<em>(Being vacation pay accrued for periods) </em>
b. Provide the journal entry for the pension benefit.
9% of employee salaries and the salaries were $750,000
=> The pension plan requires a contribution to the plan administrator: $750,000*9% = $67,500
Debit Credit
Pension expense $750,000
To cash A/C $67,500
To unfunded pension liabilities $683,500
Hope it will find you well.
Answer:
For whom will health care be produced?
Explanation:
The study of microeconomic theory is surrounded by three basic questions. The three fundamental questions of economics are solving the basic problems faced by economic agents. What to produce? How to produce? Who to produce for? These questions are pertinent because resources are scarce, but human needs are unlimited. Therefore, one has to choose the best combination of resources to make a production that meets human needs. The timing of production will depend on the perception of needs (demand), so that as man evolves, new demands emerge to improve people's quality of life.
These questions perfectly apply to microeconomic sectors such as the health sector. These three questions may apply to microeconomic sectors. In the case of health, it would be How will health care be produced? What type of health care will be produced and in what quantity? "For whom will health care be produced?" The answer to this question is given in the text to citizens living in Canada.
Answer:
Particulars Amount Explanation
Call options 1350000
Beta of stock 1.7
Delta 0.7
Market change 1% Implied stock change is 1.7
Stock changes by 1.7 1.19 Implied exposure on call
options on stock ( ie 1.7*0.7)
Amount of exposure 1606500 Derived by multiplying
1.19*1,350,000
Hence market index portfolio worth $1,606,500 should be bought , however the market index portfolio trade in multiples of 1000 hence $1,607,000 worth should be obtained to hedge the exposure
Explanation:
Answer:
Explanation:
The following items were deducted and added in the Schedule M–1 reconciliation
Additions:
C. Federal income tax per books.
D. Capital loss in excess of capital gain.
F. Premiums paid on life insurance policies covering executives (corporation is beneficiary).
Subtractions:
A. Life insurance proceeds received upon death of covered executive.
B. Tax depreciation in excess of book depreciation.
E. Charitable contributions in excess of taxable income limitation.
G. Domestic production activities deduction.
