Answer:
Dr Cash 254,430
Dr Discount on bonds payable 2,570
Cr Bonds payable 257,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on March 1, 2022
Based on the information given we were told that Brothers Inc. issues the amount of $257,000 that includes 10-year and 8% bonds at 99 which means that the journal entry to record the sale of these bonds on March 1, 2022 will be :
March 1, 2022
Dr Cash 254,430
(257,000*99%)
Dr Discount on bonds payable 2,570
([$257,000*(100%-99%)]
Cr Bonds payable 257,000
(Being to record the sale of bonds)
Answer:
1. Limited liability
2. Shareholder
The concept of limited liability is one of the main characteristics of a corporation. Limited liability means that the owners are responsible for the debts of the company only to the extent of the money they've contributed to the company.
When an investor purchases shares of a corporation, becomes a shareholder of a corporation. He can then benefit from the growth in the company since he is also the owner of the company.
Answer:
it would be C the absolute change in the price level from one period to another.
Answer:
The answer is option A) Diversification merits strong consideration whenever a single-business Is faced with diminishing market opportunities and stagnating sales in its principal business company
Explanation:
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.
It's important to diversify among different asset classes. Different assets such as bonds and stocks will not react in the same way to adverse events. A combination of asset classes will reduce your portfolio's sensitivity to market swings. Generally, bond and equity markets move in opposite directions, so if your portfolio is diversified across both areas, unpleasant movements in one will be offset by positive results in another.
Based on the annual dividend on the stock and the market yeild of similar securities, the preferred stock will sell at $227.36.
<h3>How much will the stock sell for?</h3>
This can be found as:
= Dividend x (1 - ( 1 + rate) ^- number of years) / rate
The dividend is quarterly so the rate is:
= 8% / 4
= 2%
Number of periods is:
= 10 x 4
= 40 quarters
Dividend is:
= 20 / 4
= $5
Selling price is:
= 5 x (1 - (1 + 2%)⁻⁴⁰) / 2%
= $227.36
Find out more on preferred stocks at brainly.com/question/18068539.
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