Answer:
Explanation:
The journal entries are shown below:
a. Cash A/c Dr $1,239,000 (5,900 seasons × $210)
To Unearned basket ball tickets revenue $1,239,000
(Being the sale of the season tickets are recorded)
b. Unearned basket ball tickets revenue $103,250 ($1,239,000 ÷ 12)
To basket ball tickets revenue $103,250
(Being the revenue recognized)
Answer:
The higher the price, the higher the producer's profits. Your needs and wants are unlimited. If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.
Answer:
(a) Dollar price of the bond = Par value × Current price percentage
= $1,000 × 106.124%
= $1,061.24
(b) Bond's current yield:
Annual interest paid in dollars = Bond par value × Rate of interest
= $1,000 × 7.8%
= $78


= 0.0734
= 7.34%
(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.
(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.