Answer:
1) Debit Bank $11787069 Debit bond discount $912931 ; Credit Bond $12700000
2) Debit Interest expense $751293 ; Credit Bank $660,000 Credit Discount on Bond payable $91293
3 )Debit interest expense $ 751293 ; Credit bank 660000, Credit discount on bond payable $91293
b)Interest expense = $1502586
c)It is because a financial crisis might have happened prior to issuing the bond and the company still went ahead with issuing even though the rate has changed.
Explanation:
interest expense = 12000000 * 0.11 * 6/12=$660000
discount on bond payable = $912931 /5 = 182586 /2= 91293
Interest expense = $751293 * 2 = $1502586
Answer:
1. $51,000
2.$11,000 Gain
Explanation:
(1) Calculation to determine At what amount will Calaveras value the pickup trucks
Using this formula
Trucks value =Fair value + Cash paid
Let plug in the formula
Trucks value=$45,000+$6,000
Trucks value=$51,000
Therefore Calaveras value the pickup trucks at $51,000
(2) Calculation to determine How much gain or loss will the company recognize on the exchange
Using this formula
Gain or loss on exchange =Fair value - Book value
Let plug in the formula
Gain or loss on exchange=$45,000-$34,000
Gain or loss on exchange=$11,000 Gain
Therefore the company will $11,000 GAIN recognize on the exchange
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as 140 (100%) properties.
<h3>What is a deed restriction?</h3>
This is the term that is used to refer to the written agreements that are done in order to restrict and limit activities that may go on in a property.
These are private agreements that are made. It has to be 100 percent on the properties.
Read more on deed restrictions here:
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Answer:
the Federal Reserve creates dollars and uses them to purchase government bonds from the public.
Explanation:
The money supply is increased by the Federal Reserve Open Market Committee under expansionary monetary policy actions to increase the level of aggregate demand in the market and push the level of output when business activity in the economy is low and the economy is experiencing a recession.
The FOMC creates dollars and uses them to purchase government bonds from the public that injects money in the market by increasing the credit creation capacity of commercial banks. As the money supply increases, the spending capacity of consumers is increased, either by lowering the cost of debt on their credit cards or by increasing employment in the market with increased investments by firms as they borrow with greater zeal when the cost of borrowing is low.
