Answer:
The journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $1,800,000
To Bonds payable A/c $1,800,000
(To record the issuance of bonds for cash)
(ii) On June 30th,
Interest expense A/c Dr. $90,000
To cash A/c $90,000
(To record the semiannual interest payment)
(iii) On December 31st,
Interest expense A/c Dr. $90,000
To cash A/c $90,000
(To record the semiannual interest payment)
Workings:
Interest expense:
= $1,800,000 × 10% × (6/12)
= $1,800,000 × 0.1 × 0.5
= $90,000
Answer:
$6,636.25
Explanation:
The amount which will be deposited by the Jude today in order to receive the $1,100 in the beginning of each of next eight years shall be determined through present value of annuity formula, which is given as follow:
Amount to be deposited today=R+R[(1-(1+i)^n-1)/i]
Where
R=amount to be received at start of year=$1,100
i=interest rate compounded annually=9%
n=number of years involved=8
Amount to be deposited today=1,100+1,100[(1-(1+9%)^7/9%]
=$6,636.25
A major shift for personnel management arrived in the 1930's with the emergence of UNION LAWS.
Union laws refers to a set of laws that govern the relationship between the employers and the employees. Union laws were first released in the 1903's and it changed the manners the employers treat their workers.
Answer:
The correct answer is letter "A": Perfect Competition.
Explanation:
Perfect Competition is a theoretical framework of the market, in which competition is as high as possible. In perfectly competitive markets, <em>all firms sell an identical product, all firms are price takers, all firms have a relatively small market share, buyers have complete information about the product and prices, </em>and <em>the industry is characterized by low to no barriers to enter and exit a business</em>. Perfect competitive markets do not exist in real life.
Thus, <em>if the price a consumer is willing to pay for a product is greater than its marginal cost, that individual is likely in a perfectly competitive market.</em>
Answer:
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
Explanation:
The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]
The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]
The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year
= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend
= [$8,000 x 2 Years] + $8,000
= $16,000 + 8,000
= $24,000
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
