2) The area has a major shipping port.
4) There is a major city 50 miles away from the region.
5) The area has warm weather and ocean beaches.
Number 2 tells about the economy and how they trade. Number 4 tells about were the major city is which tells you that they aren't that big, so they don't have a huge economy. Number 5 tells you about how they might farm.
Hope this helps
Answer: Please refer to the explanation section
Explanation:
Bonds are another form of debt financing, When a Company issues Bonds , the will be Obligated to make interest payment as per the bond agreement and also Repay the Face Value of the Bond at the end of the period (when the Bond reaches its maturity period). The Face Value of a Bond is used when calculating Interest Payment. Interest Payments of a Bond (also Known as Coupon payments) is calculated by Taking the Face Value of a Bond and Multiply it by the effective interest rate, that is an annual interest rate that is adjusted by the number of times interest payment are made in a year.
Bond Interest Payments or coupon Payments are recognised as Interest expense in the income statement as they represent interest expense incurred resulting from a Company's Liabilities.
We will assume that the amount of $431 721 is the Face Value of the Bond since the question didn't specify.
Market interest rate = 9%. Interest payment are made in every 6 months or twice a year (semi annually), The Annual interest rate of 9% must be divided by 2. Therefore the effective interest rate = 9%/2 = 4.5% semi annually
Face Value = $431 721
r = 9%/2 = 4.5%
Journal entries
1 January 2021
Dr Bank $431 721
Cr Bonds Long term Liability $431 721
recording bonds issue
30 June 2021
Dr Interest expense $19427.45
Cr Bank $19427.45
recording the first interest payment. Cash decreases when Payments are made thus we process a credit entry to the bank to indicate that cash is decrease when interest expense is paid
30 December 2021
Dr Interest expense $19427.45
Cr Bank $19427.45
recording the second interest payment
Answer:
B. $6,000
Explanation:
The computation of the annual depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($41,000 - $5,000) ÷ (6 years)
= ($36,000) ÷ (6 years)
= $6,000
The original cost is computed below:
= Purchase value + transportation and installation cost
= $40,000 + $1,000
= $41,000
Answer:7 years
Explanation:
Depreciation per annum
Cost- salvage value/ no of years
$4,000,000-400,000/8
= $450,000
Accumulated depreciation= depreciation per annum * no of year
Therefore no of years
= Cross multiply
Accumulated depreciation/ depreciation per annum
=$ 3,150,000/$450,000
= 7 years.
Answer:
A loss of $1400
Explanation:
The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.
The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100
=20%.
The double-declining rate will be 40%
The depreciation schedule for two years will be as follows.
Open. Bal Dep. rate Dep. Amount Book value
$27,500 40% $11,000 $16,500.00
$16,500 40% $6,600 $9,900.00
The equipment was sold for $8,500
net gain or loss will be the selling price - book value
=$8,500 - $9,900
=- $1,400
A loss of $1400