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sergejj [24]
3 years ago
9

Samson Enterprises issued a ten-year, $20 million bond with a 10% interest rate for $19,500,000. The entry to record the bond is

suance would have what effect on the financial statements? Increase assets. Increase liabilities. Increase stockholders' equity. Increase assets and liabilities.
Business
1 answer:
erastovalidia [21]3 years ago
3 0

Answer:

Assets: increase by 19,500,000

Liablities: increase by 19,500,000

Equity: no effect

Explanation:

cash proceeds:  19,500,000

      face value:  20,000,000

   discount              500,000

As the bonds issued were sold below par there is a discount.

the entry will be:

cash              19,500,000

discount on BP 500,000

     bonds payable           20,000,000

This will generate an increase on assets for 19,500,000

and increase liablities for 19,500,000

The issuance of bonds do not generate revenues or expenses. So the equity remains unchanged-

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the relationship between the factors of production used by a firm and the maximum output possible is called the
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In economics, a factor of production, resource, or input is what is used in a production process to produce products, i.e. goods or services.

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1 year ago
Match the careers to the consumer service industry to which they belong.
Gemiola [76]

Answer:

The correct answers are:

1. Actor, writer, musician  : entertainment.

2. Dietician, optician  : health care.

3. Litigator, paralegal, attorney  : legal industry

Explanation:

Industries dedicated to consumer service are those whose product is directed directly to a consumer, and not to a company.

The product they offer is a service, and not a material good.

These industries will have professionals or people specialized in the subject who will be in charge of offering and selling this product.

That is what we see in the examples.

The health industry will offer services dedicated to health, therefore it will have professionals dedicated to this field.

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7 0
1 year ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
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Answer:

Market Price $985.01

Explanation:

We have to convert the US semiannually rate to annually.

(1 + 0.078/2)^{2} -1 = 0.079521

Now this is the annual rate spected for a similar US Bonds

So we are going to calculate the present value using this rate.

Present value of an annuity of 78 for 20 years at 7.9521%

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

78 * \frac{1-(1+0.079521)^{-20} }{0.079521} = PV\\

PV = 768.55

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