Answer:
The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600
Explanation:
As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.
We can calculate the Interest expense on 7% debtures as below
Interest Expense = Value of Debenture x Effective interest rate
Interest Expense = $188,600,000 x 14.6%
Interest Expense = $27,535,600
Answer:
C. Insurance expense will increase $2,250
Explanation:
On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:
Debit Credit
Prepaid Insurance $3,000
Cash $3,000
The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.
The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.
Debit Credit
Insurance expense(3,000*9/12) 2,250
Prepaid Insurance 2,250
So the answer will be C. Insurance expense will increase $2,250
The purpose of a budget is to use good judgement in order to pay your bills and budget your money. Good judgement is mostly important because you need to be able to use good judgement to determine what bills are "needs" and what bills are "wants." This makes it so you take care of everything. The other reason I would put, is to be sure you can order your bills from most important to least important. So that you can take care of the most important "needs" before the less important "needs." Like you might need a phone, but having the unlimited plan might be a want, so the phone bill wouldn't be as important as the electric bill, even though both are needs.
Answer:
a.capital gains
Explanation:
Capital gains income -
It refers to the increase in the amount of the capital asset , where the amount received from selling the asset is more than the amount at the time of purchase , is referred to as capital gains income.
This gain can be long term as well as short term , and the amount of the asset can not be estimated , until and unless the asset is sold in the market.
Hence, from the given scenario of the question,
Trevor is practicing , capital gains income.
