Answer:
Dr. Cash $250,000
Cr. Bond Payable $250,000
Explanation:
Bonds issued are the liabilities for the company because it company received cash against the bonds which will be paid at maturity along with the interest.
As cash is an asset and it is being received, to increase the value of cash balance we debited the cash account. The bond is a liability and to add a value in a liability account we need to credit the bond payable account.
Answer:
$515.56
Explanation:
Since it is a non-subsidized loan, interest would accrue during the 4 years Jeffery is in college.
So, find interest accrued using simple interest rate formula;
Simple interest (SI)= Principal * rate* time
SI = 30,000*0.052*4
SI = 6240
Next, add this amount to the borrowed loan amount;
Total amount in 4 years = 30,000 + 6,240 = 36,240
Using a financial calculator, input the following to solve for the monthly PMT;
PV = -36,240
FV = 0
Monthly interest rate ; I = 5.2%/12 = 0.433%
N = 7*12 = 84 months
then compute payment; CPT PMT = $515.56
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
It is called the law of demand and supply whereby when the supply of commodity increases, the need reduces. The market becomes flooded with the items while the number of customers is constant. Moreover, when the supply of a good diminishes its demand goes up.
