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3 years ago

A certificate of deposit is a certificate of ownership in a corporation.

Business

1 answer:

Eddi Din [679]3 years ago

6 0

Answer:

False

Explanation:

A certificate of Deposit or CD is a deposit made into a bank for a specific time. This deposit will earn a fixed interest rate that varies upon the days the deposit is made of. The rule is: Longer the days of the deposit, longer the interest rate paid.

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Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued intere

maksim [4K]

Answer:

A. The amount of interest expense to record for 2018 is $320, calculated as follows: $12,000 x 8% x 4/12 = $320.

B. No amount of cash was paid for interest in 2018; i.e. = $0.00

C. Effect of each transaction on balance sheet, income statement, and statement of cash flows:

1. Cash Revenue of $16,200

Balance Sheet - Cash and Retained Earnings are increased by $16,200.

Income Statement - Revenue is increased by $16,200.

Statement of Cash Flows: Cash inflows are increased by $16,200. It is an operating activity (OA)

2. Bank Note Payable of $12,000 with accrued interest of $320 for 2018:

Balance Sheet - Cash and Notes Payable are increased with $12,000; Interest on Notes Payable is increased by $320 and Retained Earnings decreased by $320.

Income Statement: Net Income is decreased by $320.

Statement of Cash Flows: Cash inflows are increased by $12,000. It is a financing activity (FA).

Explanation:

1. Cash revenue increases net income and Cash Account balance, and reflects positively on the cash flows for operating activities.

2. Notes Payable increases Cash Account balance (an asset) and Notes Payable (a liability). It also increases the cash inflow for financing activities.

3. Accrued Interest on Notes Payable increases liability and decreases the net income, which reflects negatively on the Retained Earnings (Equity). It does not affect the statement of cash flows as no disposal had been made yet.

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2 years ago

A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they

algol13

Answer:

to enroll in a 401k and investing in the stock market.

Explanation:

According to my research on investment strategies, I can say that based on the information provided within the question their best options to accomplish their goal would be to enroll in a 401k and investing in the stock market. The 401K is a retirement fund that grows over years and the stock market also provides a decent ROI for your money, especially stocks like the S&P 500 which are the safest options and grow steadily over years.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago

Read 2 more answers

The _____________ define(s) what the system does.

labwork [276]

1.A.The mission of the System
2.C.Losses
3.B.Operational Characteristics

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2 years ago

What is the meaning of freak

marissa [1.9K]

someone who's mad and wierd like me......

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3 years ago

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When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, the market yield for bonds of similar r

IRINA_888 [86]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Semiannually Rate of interest = 11% ÷ 2 = 5.50% = 0.055

Number of years (half yearly) = 4 × 2 = 8 years

PVIF Value = 1 ÷ (1 + Interest Rate)^Number of years

=1 ÷ (1 + 0.055)^8

= 1 ÷ 1.5347

= 0.65160

PVIFA Value = [1 -1 ÷ (1 + Interest Rate)^Number of years ÷ Interest Rate

= [1 - 1 ÷ (1 + 0.055)^8] ÷ 0.055

= [1 - 0.65160] ÷ 0.055

= 6.33457

Particular PV table value Multiply Amount ($) PV value

Principle value 0.65160 × 640,000 $417,024

Annually interest Value 6.33 × 32,000 $202,706

($640,000 × 6 ÷ 12 × 10%)

Present Bond’s Price $619,730

2).

Journal Entry

On Jan.1,2021

Cash A/c Dr. $619,730

Discounts on bond payable A/c Dr. $20,270

To Bond payable A/c $640,000

(Being bond issued at discount is recorded)

3. The amortizable schedule is presented on the attachment below

4).

Journal Entry

June 30,2021

Interest expense A/c Dr. $34,085

To Cash A/c $32,000

To Discount on bond payable A/c $2,085

(Being interest expenses is recorded)

5) On December 31,2021 Amount of bonds reported = $624,015

6). Interest expenses reported in income statement

= $34,085 + $34,200

= $68,285

7).

Journal Entry

On Dec. 31,2024

Interest expense A/c Dr. $35,032

To Cash A/c $32,000

To Discount on bond payable A/c $3,032

(Being interest expense is recorded)

On Dec.31,2024

Bond payable A/c Dr. $640,000

To Cash A/c $640,000

(Being interest expense is recorded)

5 0

3 years ago