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3 years ago

When comparing a Variable Rate Demand Obligation (VRDO) to an Auction Rate Security (ARS), which statement is FALSE?

Business

1 answer:

lozanna [386]3 years ago

5 0

Answer:

Both have tender options.

Explanation:

Variable rate demand obligation and Auction rate securities both are long term bonds which have interest rate that reset weekly or monthly. This advantages the issuer with lower short term rates despite of long term security. Both of these securities are subject to credit risk of the issuer and they are marketed by broker dealers.

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Assume that IBM leased equipment that was carried at a cost of $92,000 to Carla Vista Company. The term of the lease is 6 years

borishaifa [10]

Answer:

(To record the lease)

Lease Receivable -------- $92,000 (Debit)

Equipment -------- $18,427 (Credit)

(To record the lease first payment)

Cash -------- $92,000 (Debit)

Lease Receivable -------- $18,427 (Credit)

Explanation:

Given:

Lease Amount (Present Value) = $92,000

Rental Payment = $18,427

Term of Lease = 6 years

Equipment Useful Life = 6 years

Implicit Interest Rate = 8%

To prepare IBM's December 31, 2020, we'll make use of the following entries.

To record the lease itself:

1. Lease Receivable (Debit)

2. Equipment (Credit)

To record the lease first payment:

3. Cash (Debit)

4. Lease Receivable (Credit)

Only the first lease payment is considered because the commencement date of the lease is December 31, 2019; Between December 31, 2020 and December 31, 2019, only one payment (i.e. the first payment) is expected to have been recorded.

The recorded entry is as follows;

(To record the lease)

Lease Receivable -------- $92,000 (Debit)

Equipment -------- $18,427 (Credit)

(To record the lease first payment)

Cash -------- $92,000 (Debit)

Lease Receivable -------- $18,427 (Credit)

3 0

3 years ago

Municipal bonds are issued by whom? A. Federal government B.State or local governments C. Corporations D. All of the above

True [87]

The answer all of the above

4 0

3 years ago

Read 2 more answers

Palladia specializes in the production of beef and produces beef more efficiently than any other country. It buys wheat, which i

SashulF [63]

Answer:

Comparative advantage

Explanation

Comparative advantage is a theory that refers to the ability to produce products at a lower opportunity costs than others. This concept means that if a country is better than other producing two products, specialization still can happen as the second country can produce one of the products better and it will specialize as it has a comparative advantage and like that each country focuses on what they can produce more efficiently.

6 0

3 years ago

Arthur Rabe is suing Xavier Sanchez for breaching a contract in which Sanchez promised to sell Rabe a Van Gogh painting for $150

OLEGan [10]

Answer:

Remedies

a. The suing party is called the plaintiff. The party being sued is the defendant. Therefore, since Arthur Rabe wants to sue Xavier Sanchez. Rabe is the Plainttiff and Sanchez is the Defendant.

b. If Rabe wants Sanchez to perform the agreement as promised, Rabe would seek remedy of Specific performance of Contract from the Court. Failure to do so will attract charges.

c. If Rabe wants the contract to be cancelled, then Rabe would ask the court for a rescission which is the cancellation of a contractual obligation.

d. The term remedies refers to a legal means to enforce a right or redress a wrong. Remedies of law include land, items of value or money. Remedies in equity includes specific performance, injunction and rescission. Thus, both remedies in part b and c are remedies in equity.

e. The party appealing a case is called the appellant or petitioner while the appellee is the party against whom the appeal is taken. So Sanchez would be the appellant and Rabe would be the respondent.

7 0

3 years ago

The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The ac

viktelen [127]

Answer:

Sales Revenue 326,560 debit

Income Summary 326,560 credit

-- to close revenues account--

Income Summary 310,360 debit

Income Tax Expense 10,530 credit

Office Expenses 6,330 credit

Rent Expense 164,500 credit

Salaries and Wages Expense 129,000 credit

--to close expenses account--

Income Summary 16,200 debit

Retained Earnings 16,200 credit

-- to close retained earnings--

Explanation:

To close the accounting period, we will use income summary account.

We will use it against revenues, expenses and dividends. Then his balance will be closed against retained earnings.

Income Summary balance: 326,560 - 310,360 = 16,200

3 0

3 years ago