Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $1,000,000
To Bond payable $1,000,000
(Being the issuance of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
2. Interest Expense Dr ($1,000,000 × 5% × 1 ÷ 2) $25,000
To Cash $25,000
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expense and credited the cash as it decreased the asset
Answer:
When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.
Answer:
c) 48,000
Explanation:
<em>Equivalent Units</em>
To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress
<em>Equivalent Units = Degree of Completion × Units of products</em>
<em />
<em>Item units workings E.U</em>
Finished products 45,000 100% × 45,000 = 45,000
Closing WIP 5000 3/5 × 5000 = 3,000
Total equivalent unit 48,000
Equivalent unit for the conversion cost= 45000 +3000= 48,000
Answer:
14%
Explanation:
required rate of return = risk free rate of return + ( risk premium x beta)
5% + 1.5 x 6% = 14%
Answer:
the value of imports increasing by more than the value of exports at the time of devaluation.
Explanation:
J-curve effect means the starting depreciation effect based on the balance of trade that should be negative also when the imports and the exports adjusted on the long run with respect to the changes made in the prices so the net effect should be positive
So as per the given situation, the above should be the answer
