Answer:
Option C is correct one.
Interest expense 773
Discount on bonds payable 73
Cash 700
Explanation:
2016 interest expense = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate
= $9,668 x 08
= $773
Cash interest payment
= maturity value of the bond x the stated interest rate = $10,000 x .07
= $700
Amortization of discount on bonds payable
= interest expense - interest cash payment
= $773 - $700.
= $73
Answer: Advertising
Explanation:
For a new company to quickly reach as many customers as quickly as possible, the company has to be involved in selling itself to the public and also intensive advertising.
Advertising is a form public awareness created for a particular product: which is new or already existing in a market. Advertising could involve the use of; Mass media, social media, fliers and banners.
Answer: Debit Supplies
Credit Cash
Credit Accounts payable.
Explanation:
The journal entry is an act of making records of the transactions in an organization which shows the debit and credit balances of the company.
Based on the information given, since General Electric bought supplies in the amount of $1,500, the journal entry will be:
Debit Supply $1500
Credit Cash / Accounts Payable $1500
Answer:
The correct answer is letter "C": among the factors that are responsible for market risk.
Explanation:
Market risk is a chance that the value of an investment will decrease due to a factor that affects all investments across the market. Investors always assume there could be a certain level of risk. There is always a chance that their investments will not meet their expected returns.
Examples of factors of market risk are <em>changes in equity prices, fluctuations in the interest rate, changes in foreign exchange rates, inflation </em>or <em>a recession</em>.
To solve this problem, we will use a valuation method
named income valuation includes discounting of the profits the stock will
carry to the stockholder in the probable future, and a final value on disposal.
Solution:
1.57 (1.05) / (.14 - .05)
= 18.32. the answer is letter d.
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