Answer:
Bonds Payable 300,000 debit
Loss on redemption- Bonds Payable 22,000 debit
Cash 312,000 credit
Discount on Bonds Payable 10,000 credit
--to record the reemption of old-bonds--
Explanation:
<em>call price</em> = 300,000 x 104/100 = <em>312,000</em>
Bond payable (net) 300,000 - 10,000 = 290,000
Loss at redemption 22,000
We should recognize a loss as we are paying for the bonds 312,000 dollars while they are worth 290,000
To do the entry, we will write-off the bonds payable and the discount on bonds account. Wer will credit the cash used on the redemption and debit the expense.
Answer:
a. Accounting profit for the business = $3,500
b. Economic loss = $1,000
c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation. In subsequent years, the revenue may increase to generate better economic profit. This is the labor, risk, and reward of entrepreneurship.
d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs. They are merely laborers who cannot assume any risk for greater rewards tomorrow.
Explanation:
Cost of business per month:
Operating expenses = $4,000
Lease of building = 2,000
Total expenses = $6,000
Revenue = $10,000
Accounting profit $4,000
Economic profit:
Revenue = $10,000
Total expenses = $6,000
Opportunity costs:
Lost salaries 4,500
Lost Interest 500
Total costs $11,000
Economic loss = $1,000
Answer:
Bob wants to gain extra knowledge by joining a professional organization - professional growth and development.
Libby seeks money for research in a particular field- scholarship
Joseph wants to know the latest legislation pertaining to his industry-certification
Debby wants to work as an intern under the guidance of an expert in her field -mentoring
Chad likes to meet with members of his fraternity to get a better perspective of their work - Networking
Explanation:
Bob wants to gain extra knowledge by joining a professional organization - professional growth and development. This is because any attachments to professional organization is always a professional development.
Libby seeks money for research in a particular field- scholarship. Because when you ask for money for studies, research or a university based project, including PhDs, is always either a scholarship or a grant.
Joseph wants to know the latest legislation pertaining to his industry-certification. Any formal studies in corporate or industry is a certification, just like when you study in school/university you get degree.
Debby wants to work as an intern under the guidance of an expert in her field -mentoring. Whenever anyone seeks help from an expert, supervisor or managers, the person who helps is a mentor.
Chad likes to meet with members of his fraternity to get a better perspective of their work - Networking. Meeting and icebreaking is a way to networking, to socialize and know more.
Answer:
Explanation:
I will be starting with the similarities first. 3 of the similarities both of them share are
1) They both have a financial leverage that is quite high
2) they both can be subjected to national oversight as regards to their balance sheet quality.
3) they both are institutions that accepts funds and also gives out funds to finance commercial firms
Moving on to the differences, differences that exists between both includes
1) Insurance companies can are invest in stock markets but depository institutions do not have that leverage.
2) Insurance companies do not have fixed composition of liabilities, while depository institutions have.
3)
