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kolbaska11 [484]
3 years ago
13

On December 31, 2015, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Write down the necessa

ry journal entries.
Business
1 answer:
maria [59]3 years ago
8 0

Answer:

December 31

DR Cash $139,875

DR Discount on Bonds Payable $10,125

CR Bonds Payable $ 150,000

Explanation:

Cash

Because Wintergreen is selling at $93.25 when Par Value is usually at $100, they are selling at a discount.

Cash Received = 150,000 * 93.25/100

= $139,875

Discount on Bonds

= 150,000 - 139,875

= $10,125

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What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to
Oxana [17]

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.

5 0
3 years ago
Buying the beneficiary position on a life insurance policy of someone who is dying
MaRussiya [10]

Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as <u>Viatical Settlement</u>

Explanation:

  • <u>Viatical settlement</u> refers to the sale of a life insurance policy by the owner to a third party for a amount which is more than its surrender value but less than its net death benefit.
  • Viatical settlement provides the policy owner with a lump some amount of money.
  • The <u>viatical settlement </u>is tax-free as per the Health Insurance Portability and Accountability Act (HIPAA) 1996

6 0
3 years ago
This card works like a short-term loan? <br> A. debit<br> B. credit
azamat
A loan is where you ask for money and then pay it back later.
This is like a credit card since you can buy things and then pay the credit card bill at the end of the month.
4 0
2 years ago
Read 2 more answers
They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their
mojhsa [17]

Answer: to protect the economic freedom of all of its citizens

Explanation:

The above quote by Adam Smith was him criticizing the common practice in those days of nations trying to control the spending habits of their citizens by passing restrictive laws and limiting the importation and production of certain goods and services.

It would therefore support the U.S. policy of protecting the economic freedom of her citizens such that they may trade whatever it is that they want - so long as it is legal - without restrictions by the government.

3 0
3 years ago
Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institu
Sergio [31]

Answer:

1. Commercial banks

2. Life insurance companies

3.  Mutual funds

Explanation:

commercial banks

The commercial bank is a financial institution that accepts deposits and offer other services such as giving loans and other basic financial services to both individuals and organisations.  

Life insurance companies

The life insurance companies are financial institutions that provide lump sums otherwise known as death benefits to beneficiaries  of their policy holders upon their demise, provided that premium is paid on regular basis.

Mutual fund

A Mutual Fund is an investment vehicle made up of a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund's capital and attempt to produce capital gains and income for the investors.  

One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.​

4 0
3 years ago
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