Answer:
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Explanation:
Record the entry for the first semiannual interest payment and the second semiannual interest payment.
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Answer:
Revenues to be understated.
Explanation:
The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.
In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.
When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and the amount is less than the true amount.
The adjusting entry that should be done is:
Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.
Answer:
B) Hillward can sue Hobert since the logo has been used by Hillward and is associated with it.
Explanation:
Since Hillwards logo is an elaborate piece of creative art, then they can sue Hobert for using their logo since it was associated directly to them during the past decade. Common logos are not usually protected by copyright unless they show significant creative artwork done.
It is always better and easier to protect a logo when it is a registered trademark but even if you haven't registered it you can still sue and win for infringement. When a company uses a logo, especially for a long time, it is establishing common law trademark rights.
Answer:
Capitalized value $582.000.
Explanation:
Step 1. Given information.
- The common share of Miser had a fair value of $50 per share.
Step 2. Formulas needed to solve the exercise.
- Fair value of shares = Price per share * (Amount by selling scrap - exchanged shares)
- Capitalized value = fair value of shares - value of scrap.
Step 3. Calculation.
Fair value of shares = $50 * (18.000 - 6.000) = $600.000
<em />
<em>Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant. </em>
Step 4. Solution.
<em />
Fair value of shares = $50*12.000 = $600.000
Less: value of scrap = $18.000 .
Capitalized value = $600.000 - $18.000 = $582.000.
Answer: c. tax increase of some amount less than $45 billion
Explanation:
Increasing taxes will have the effect of reducing the Consumption in the Economy as it will reduce the disposable income that people have to spend on goods and services. It is therefore an option to bring the Economy back down to fill employment.
However, when the Taxes are increased, they should be increased by an amount less than the $45 billion because Taxes have a Multiplier effect meaning that an increase in taxes will slow down the economy more than the increase itself. This is why it should be an amount less than 45 billion especially having taken the Multiplier into account so that a good estimate of the amount needed will be ascertained.
