Answer:
a. Provide the journal entry for the vacation pay
Debit Vacation and Holiday expense $49,000
Credit Vacation and Holiday payable $49,000
<em>(To record earned Vacation and Holiday expenses)</em>
b. Provide the journal entry for the pension benefit
Debit Pension expense $30,000
Credit Pension liability $30,000
<em>(Being pension benefit recognition)</em>
Explanation:
- The earned vacation and holiday expense has to be recognized in line with the accrual principle of accounting.
- The pension benefit was also recognized in line with the accrual principle of account. The pension plan is a contribution of 6% of employee salaries, which amounted to $500,000. So, 0.06 x 500,000 = $30,000.
The Franchiser under the franchise contract allows the franchisee to sell products and services under its business name.
Explanation:
- A franchise can be defined as a type of contractual arrangement or license that a party (Franchisee) acquires which allows the franchisee to have access to the proprietor's knowledge, process, and trademarks.
- whenever a business house intends to expand its geographical reach by incurring less expense it creates a franchise for its product and services
Answer:
.B) limited resources to satisfy virtually unlimited wants.
Explanation:
The resources at our disposal is limited while our wants are unlimited.
For example, the money in my account (resources) is not enough to buy All The things I would like to have (wants).
I hope my answer helps you
Answer:
<h2>The answers in this case are <u>will remain unchanged</u> and <u>will remain unchanged </u> respectively.</h2>
Explanation:
- In this case,due to a recession the overall hours of work worked by individual employees or staff are reduced by the employers.
- Now,note that it has been mentioned that everything else or every other factor or component in the economy is constant in the economy and thus,unaffected by the recession.
- Therefore,it can be reasonably assumed that the unemployment rate will remain the same as there has not been any worker expulsion or layoffs as a result of the recession based on the information provided in the question.
- Furthermore,the labor force participation will also presumably remain unchanged as there has been no change in the existing working or employed labor force and/or in the overall population level based on the information presented.
The question is incomplete. The complete question is :
Selling bonds. Rawlings needs to raise $41,800,000 for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of 2.2 %. The market yield is currently 7.7 % on twenty-year zero-coupon bonds. If Rawlings wants to issue a zero-coupon bond, how many bonds will it need to sell to raise the $41,800,000?? Assume that the bond is semiannual and issued at a par value of $ 1000. How many bonds will Rawlings need to sell to raise the $41,800,000?
Solution :
We know that a zero compound bond does not pay any coupon payments, so the bond price is present value for the cash inflow from a zero coupon bond.
The present value of a maturity value uses a YTM as a discount rate.
We will find the semi annual rates and the time periods as the semi annual bond is given.
The semi annual YTM is =
= 3.85 %
Number of the semi annual periods till maturity = 20 x 2
= 40
The bond price =
= $ 220.668308088
The investment bank will then sell the bonds at a price above but the charge will be2.2% commission on the above price.
The net proceeds to Rawlings
= $ 215.813605311
∴ The number of bonds required :
= 193,685.657
≈ 193,686 bonds