Answer:
A. Stop payment on the first check; then write a second one.
Explanation:
There are certain rules and procedures in banking system. If any check written is lost, then firstly the check shall be made invalid the one which is lost.
To make it invalid, stop payment can be done. Stop payment basically converts the check into a mere paper, with no validation, even if such check is presented no payment is made against it.
Further by issuing check you create a liability that you owe some money as against the party in consideration on check.
Therefore, after stop payment a new check shall be issued.
Answer:
Option E, is correct as effective interest $ 120,839
Explanation:
The coupon interest payable semi-annually is computed thus:
Semi-annual coupon =13%/2*$2000000
=$130,000
However the bond was issued at premium, using effective interest the first interest payment is calculated on the actual issue value of the bond of $2,197,080 using the market rate of interest
effective interest=11%/2*$2,197,080
=$ 120,839.40
Hence,the interest expense based on effective interest is $120,839 rounded to the nearest whole number
Option D is wrong because the effective interest is a semi-annual interest not an annual one.
Answer:
Dr bond investment $1,400,000
Cr cash $1,400,000
Cash interest is $112,000.00
Interest revenue for the year is also $ 112,000.00
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00
Answer:
Software development to be recognized = Cost incurred after achievement of technological feasibility = $400,000
Explanation:
Useful life = 4 years
Annual amortization = $400,000 / 4 years = $100,000
Period of amortization in 2016 = July 1, 2016 to December 31, 2016 = 6 months
Year 2016 amortization = $100,000 × 6 months/12 months = $100,000 × 1/2 = $50,000
By employing such an organizational structure, Century Motors most likely set up a <u>Matrix Organization. </u>
A Matrix organization:
- Incorporates people from multiple departments and functions
- Will see people answering to multiple managers of those various departments
- Usually disband after a project is done
The actions of Century Motors are in line with a Matrix Organization in that people from multiple functions were incorporated into the team and the team will disband when the project is done.
We can therefore conclude that this is a matrix organization.
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