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Snowcat [4.5K]
3 years ago
14

Interest on cash balance is entry required or not

Business
1 answer:
ValentinkaMS [17]3 years ago
8 0

Answer: No

Explanation: Unless it is invested in short-term securities, there will be no interest income for cash in any financial statement.

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Bridle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 20
Klio2033 [76]

Answer:

Cash                294,000 debit

discount on BP    6,000 debit

     Bonds payable         300,000 credit

--to record issuance of bonds--

Explanation:

We multiply the face value by the issuance quote over 100

300,000 x 98/100 = 294,000

Then, the difference will be considered discount as the bond were issued below their face value

300,000  -   294,000 = 6,000

We are going to debit cash for the amount collected and then, debit the discount to adjust the bonds payable to the carrying value of 294,000

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4 years ago
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4 0
4 years ago
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If an account valued at $1,000 is leveraged 5:1, a 10% drop in the value of invested assets would cause the value of the account
Marina CMI [18]

Answer:

A 10% drop in the value of invested assets would cause the value of the account to decrease by $500

Explanation:

Leverage is a way in which companies can use borrowed capital to use in an investment. The leverage stands to multiply the profits of the investments if the investment proves profitable, however if the investment registers a loss, the loss is also multiplied.

In our case;

Initial value of assets=$1,000

leverage=5:1

A 10% drop means;

Decrease in value of account before leverage=percentage drop×initial value of assets

Decrease in value of account before leverage=(10/100)×1,000=$100

If we apply a leverage of 5:1,

Account decrease after leverage=100×5=$500

A 10% drop in the value of invested assets would cause the value of the account to decrease by $500

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4 years ago
_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel rela
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Hope this helps !

Photon</span>
8 0
4 years ago
Joe's hardware bought moe's hardware on the other side of town. this is an example of ________.
KiRa [710]
The appropriate response is Horizontal Integration. It is the procedure of an organization expanded generation of products or administrations at a similar piece of the inventory network. An organization may do this through inside development, obtaining or merger. The procedure can prompt an imposing business model if an organization catches most by far of the market for that item or administration.
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