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2 years ago

A customer buys $100,000 of a new issue 30 year U.S. Government bond at 80. At maturity, the customer will have:

Business

1 answer:

exis [7]2 years ago

3 0

Answer: No capital gain or loss

Explanation:

The bonds were bought at discount but will be redeemed at par. This does not mean that there will be a capital gain because the discount will simply be added back to the value of the bond overtime.

When the bond then gets to maturity, the discount would simply have been added back because the bond is to be redeemed at par. Because the bond was always going to be redeemed at par, the difference in price is not considered a capital gain.

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Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National

dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

Update the Cash Book (Bank Column) Balance

Cash Book (Bank Column)

Debit :

Balance as at August 31 $1,620

Rent collection $375

Total $1,995

Credit :

Service charge $9

Dishonored Checks $137

Printing Charge $20

Error : Understatement $252

Balance as per updated CB $1,577

Total $1,995

Step 2

Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement as at August 31

Balance at Bank as per updated Cash Book $1,577

Add Unpresented Checks $756

Less Lodgements not yet credited ($1,695)

Balance as per Bank Statement $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0

2 years ago

A politician is interested in the proportion of voters in his district who think he is doing a good job.

MaRussiya [10]

A politician should be interested in the proportion of voters in his district.

The answer is true.

Explanation:

This is not only true for politician but also for any job which involves voting.

A person / leader will be recognized, if he

look into the welfare of the society
takes measure when problem occurs
is easily accessible to the public
lend his ears to the problems
provides an unbiased approach
he is interested in doing service
obeys laws

But it does not mean that, the person who got victory in the election has done good job in the previous service period. There are many factors that decide the polling of vote.

3 0

3 years ago

Which workers are required to handle money as part of their job qualifications?

melamori03 [73]

A
A lot of Money in that business

4 0

3 years ago

Read 2 more answers

Torrey Co. manufactures equipment that is sold or leased. On December 31, 2021, Torrey leased equipment to Dalton for a five-yea

topjm [15]

Answer:

$850,000

Explanation:

The computation of Amount of income should Torrey realize from the lease transaction is shown below:-

Amount of income should Torrey realize from the lease transaction = Sale price - Cost

= $3,850,000 - $3,000,000

= $850,000

Therefore for computing the amount of income should Torrey realize from the lease transaction we simply deduct the cost from sales price.

5 0

3 years ago

During the current year, sales on account were $306,673, collections on account were $290,750, write-offs of bad debts were $7,0

sweet-ann [11.9K]

Answer:

1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.

Accounts Rec T-Account

$ 306.673 Debit

$ 290.750 Credit

$ 7.059 Credit

$ 8.864 Debit Balance

Allowance for Doubtful Accounts T-Account

$ 7.059 Debit

$ 4.775 Credit

$ 2.284 Debit Balance

1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.

$ 4.775 Dr Bad Debt Expense

1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.

$ 2.284 Dr (Debit) Allowance for Uncollectible Accounts

$ 8.864 Dr (Debit) Accounts Receivable

Explanation:

Initial Balance

Dr Accounts Receivable $ 306.673

Write-offs of bad debts

Cash $ 290.750

Cr Accounts Receivable $ 290.750

Write-offs of bad debts

Dr Allowance for Uncollectible Accounts $ 7.059

Cr Accounts Receivable $ 7.059

Bad debt expense adjustment

Dr Bad Debt Expense $ 4.775

Cr Allowance for Uncollectible Accounts $ 4.775

1-b. Complete the amounts related to Accounts Receivable and

Bad Debt Expense that would be reported on the INCOME STATEMENT for the current year

Dr Bad Debt Expense $ 4.775

1-c. Complete the amounts related to Accounts Receivable and

Bad Debt Expense that would be reported on the BALANCE SHEET for the current year.

Dr Allowance for Uncollectible Accounts $ 2.284

Dr Accounts Receivable $ 8.864

6 0

3 years ago