Answer:
True
Explanation:
Trust must exist between the agent and the client, and the agent should remain loyal to his or her client.
Agency relationships exist when an agent (a person) acts for or on behalf of his client (also referred to as the principal).
This type of relationship can only exist as long as mutual trust exists between the agent and his client.
Answer:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
Dr Plan assets - pension 411,400
Cr Service cost 245,000
Cr Interest 166,400
Explanation:
Preparation of the journal entries to record annual pension expense for the enterprise fund of Amherst City
Since we are Assuming that the plan investments was $184,300 while the service cost component is the sum of $245,000, and interest on the pension liability is the sum of $166,400 for the year this means the Journal entries to record annual pension expense for the enterprise fund of Amherst City will be:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
(245,000+166,400)
Dr Plan assets - pension 411,400
(245,000+166,400)
Cr Service cost 245,000
Cr Interest 166,400
Answer: The correct answer is that it will increase the real interest rates.
Explanation: If the Fed sells bonds and, thereby, unexpectedly shifts to a more restrictive monetary policy, in the short run the primary impact of this policy will increase the real interest rate. The real interest rate is the rate that is in effect after allowing for inflation.
Answer:
c. interest paid over the life of the bond minus the amount of premium at sale
point.
Explanation:
when bonds are issued at premium the total interest cost of the bonds over the life of the bonds is equal to the amount of interest paid over the life of the bond minus the amount of premium at sale point.
From below journal entry you can see that, When interest payment is made cash is credited full amount but interest is debited after deducting amortised premium.
Journal entry if bonds are issued at premium
cash xx
Bonds Payable xx
Premium on bonds payable
xx
Interest Expense xx
Preminum on bonds payable xx
cash xx
Answer:
See explanation section.
Explanation:
December 31, 2017
Bad debt expense Debit = $17,600
Allowance for Doubtful Account Credit = $17,600
To record the bad debt expense
Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.