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Delvig [45]
2 years ago
5

Assume that on April 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bon

ds pay interest semiannually on March 31 and September 30. Jerome intends to hold the bonds until they mature.
Required:
Write down the journal entry.
Business
1 answer:
lorasvet [3.4K]2 years ago
6 0

Answer:

Dr Potter's 8% Bonds $100,000

Cr Cash $100,000

Dr Cash $4,000

Cr Interest income $4,000

Explanation:

Based on the information given the appropriate journal entry will be:

Dr Potter's 8% Bonds $100,000

Cr Cash $100,000

(Being 8% Bonds purchased)

Dr Cash $4,000

Cr Interest income $4,000

($100,000*8%*1/2)

(To record semi annual interest receipt)

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4 0
2 years ago
In the actual economy, goods and services are purchased byA. households, but not firms or the government. B. households and the
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C. households, firms, and the government.

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In the actual economy, goods and services are purchased by households, firms, and the government.

7 0
3 years ago
The basic premise of​ ______ is that firms should establish objectives and evaluate strategies on criteria other than using only
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Answer:

D, balanced scorecard

Explanation:

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It also helps to see whatever complications or success that are as a result of the job done by the employees.

A balance scorecard involves the satisfaction of customers by how much time, quality of service, performance of service, among other things. Also, the balance scorecard is helps to focus on some other important roles that could affect customer satisfaction.

Cheers.

3 0
3 years ago
Your restaurant has assets of $64,342 and liabilities of $47,266. What is the equity of your business?
Alborosie

Answer:

Equity of the business= $17,076.

Explanation:

Equity as used in business is used to refer to the difference between the worth of a business (its assets) and what the business owes (debts and liabilities).

In other words, total equity refers to the value which is left in the company after the total liabilities must have been subtracted from the total assets.

The formula to calculate total equity is given below:

Equity = Assets - Liabilities

Therefore to calculate the equity above, we have:

Equity = $64,342 - $47,266

Equity = $17,076.

4 0
2 years ago
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