Answer:
The journal entry for the issuance of the bond is shown below:
Explanation:
The entry to be posted on Jan 1
Cash A/c..............................................Dr $76,180
Premium on bonds payable A/c........Cr $6,180
Bonds Payable A/c..................................Cr $70,000
As bonds issued, so cash is increasing and any increase in cash is debited. Therefore, the cash account is debited. But the bonds issued at a premium so the premium on the bonds payable will be credited. And bonds payable account is credited.
The heading of the business letter should contain a return address which is consists of about two or three lines followed by the date. Before putting a date, you can even put a telephone number, fax number, and email address in the business letter. Business letters are formal letters from a company and to external parties and clients.
Answer: $360 billion
Explanation:
In a private closed economy, there will be two components missing which are Government spending and Net exports.
There will be no Government spending because the economy is private and there will be no net exports because the economy is closed.
GDP will therefore be:
= Consumption + Investment
If Investment is $12 billion then the equilibrium level of GDP will be the GDP which when Consumption is deducted, the investment amount of $12 billion will be the result.
That GDP level is $360 billion.
When the consumption amount of $348 billion is subtracted from the GDP, you get $12 billion for investment.
Answer:
The increase in GDP is $250
Explanation:
The increase in investment spending = $100
Marginal propensity to consume = 0.6
Now we have to find an increase in the GDP after absorbing the $100.
Therefore, we need to find the multiplier by using the marginal propensity to consume.
Multiplier = 1 / (1-MPC)
Multiplier = 1/( 1- 0.6)
Multiplier = 2.5
The increase in GDP = increase in investment spending × Multiplier
The increase in GDP = 100 × 2.5 = $250
Answer:
11.41%
Explanation:
Discount rate = 11%, M = 120 days = 3 month
Effective rate = [(1 + 11% / 3)^3] - 1
Effective rate = [(1 + 0.11/3)^3] - 1
Effective rate = [(1 +
0.0366667)^3] - 1
Effective rate = [(1.0366667)^3] - 1
Effective rate = 1.1140827371 - 1
Effective rate = 0.1140827371
Effective rate = 11.40827371%
Effective rate = 11.41%
