What do you call a specific Market group that wants, and can afford, your product

Assume that you have a three-year-old daughter and you have come to appreciate the power of saving and investing. Can you open u

aliya0001 [1]

Answer:

No.

You cannot open up and put money into a Roth IRA in your child's name.

Explanation:

The IRS allows that any child, regardless of age, can contribute to an IRA if they have earned income. This means that only a child that has earned income can have an IRA opened for him or her. As the child is still underage, the IRA must be set up as a custodial account by the parent or another adult. This implies that the child cannot operate the account during the period she is underage but can have money saved in the account from her earned income.

4 0

3 years ago

The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one o

professor190 [17]

Answer:

The answer is D.

Explanation:

An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.

For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.

6 0

3 years ago

A company uses the cost method of accounting for treasury stock. On January 1, the company repurchases 1,000 shares of stock at

Ksivusya [100]

Answer:

The credit on December 31 is to credit Treasury Stock with $15,000.

Explanation:

There are two methods for accounting for Treasury Stock. The first is the par value method. With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.

Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.

This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.

3 0

3 years ago

Sophia, a teacher from Vancouver, Washington, can compare her compensation to peers in the District of Columbia, where pay is mu

KonstantinChe [14]

Answer:

adjust for purchasing power and conditions existing in the local market

Explanation:

the concept of Equity theory describes how resources can be distributed in a fair manner in comparison to others. Sophia has to adjust for what the money she receives can buy her and the prevailing conditions in the market in her own area. This is because in this theory, pay scale is affected by the purchasing power and condition of the market in whatever area that a person lives.

3 0

3 years ago

On January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and

Aleonysh [2.5K]

Answer:

Date Interest Interest Amortization Bond's

payment expense bond discount book value

Jan. 1, 2018 457,102

June 30, 2018 22,500 23,572.45 1,072.45 458,174.45

Dec. 31, 2018 22,500 23,572.45 1,072.45 459,246.90

Assuming you are using a straight line amortization of bond discount, then the amortization per coupon payment = $42,898 / 40 = $1,072.45

January 1, 2018, bonds are issued

Dr Cash 457,102

Dr Discount on bonds payable 42,898

Cr Bonds payable 500,000

June 30, 2021, first coupon payment

Dr Interest expense 23,572.45

Cr Cash 22,500

Cr Discount on bonds payable 1,072.45

December 31, 2021, second coupon payment

Dr Interest expense 23,572.45

Cr Cash 22,500

Cr Discount on bonds payable 1,072.45

If the company uses the effective interest method, the numbers vary a little:

amortization of bond discount on first coupon payment:

($457,102 x 5%) - ($500,000 x 4.5%) = $22,855.10 - $22,500 = $355.10

Journal entry to record first coupon payment:

Dr Interest expense 22,855.10

Cr Cash 22,500

Cr Discount on bonds payable 355.10

amortization of bond discount on second coupon payment:

($458,174.45 x 5%) - ($400,000 x 4.5%) = $22,908.72 - $22,500 = $408.72

Journal entry to record second coupon payment:

Dr Interest expense 22,908.72

Cr Cash 22,500

Cr Discount on bonds payable 408.72

7 0

3 years ago