Answer:
January 1, 202x, bonds issued at a discount
Dr Cash 441,361
Dr Discount on bonds payable 18,639
Cr Bonds payable 460,000
amortization of bond discount = ($441,361 x 4%) - ($460,000 x 3.5%) = $17,654.44 - $16,100 = $1,554.44
June 20, 202x, first coupon payment
Dr Interest expense 17,654.44
Cr Cash 16,100
Cr Discount on bonds payable 1,554.44
Answer:
c) Catastrophe Bonds
Explanation:
These type of bonds are also known as the CAT bonds, and they are issued at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.
Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.
Hope this helps.
Thanks buddy.
Answer:
The company needs to borrow $25000 and option B is the correct answer.
Explanation:
If the ending amount of cash for the year is less than the desired ending balance, then the company will need to borrow to maintain the desired level of cash balance.
To calculate the amount needed to be borrowed, we first compute the ending cash balance for December. The ending cash balance will be,
Closing Balance = Opening Balance + Receipts - Payments
Closing Balance - December = 14000 + 127000 - 126000
Closing Balance - December = $15000
The difference between the closing cash balance and the desired closing cash balance is the amount that the firm will need to borrow.
Amount need to be borrowed = 40000 - 15000 = $25000
Answer:
May incorporate in any state it chooses.
Explanation:
Incorporation can be defined as the creation of a new business which will have equal rights as that of an individual.
The different steps for incorporation include:
- Proper documentation of the reports of incorporation.
- Choosing a suitable name for the business.
- Documenting the various operational agreements.
- Appointing managers to supervise the daily activities.
- Getting a federal employment identification number.
- Opening accounts for keeping the revenues that will be generated by the company.
- Employing diffetents workers to carry out various activities in the company.
Idk I can’t see the choices sorry which I could help
