People who buy shares of a company are called entrepreneurs. a.True b.False

The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts

Allisa [31]

Answer:

a. True

Explanation:

In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading

So the given statement is true

6 0

3 years ago

All of the following are employer payroll taxes except: Multiple Choice Social Security tax equal to that withheld from employee

vitfil [10]

Answer: Federal income tax equal to that withheld from employees.

Explanation:

Federal Income Tax equal is a withholding Tax that the employer takes from an Employee's salary and pays it directly to the Government in form of income taxes.

It will therefore count towards the Income Taxes that the person is to pay during the year.

This is an Employee Payroll Tax because it comes from the Employees's salary.

8 0

3 years ago

If the owner of a company withdrew 200 during a period the closing entry for the owner withdrew account would show a

erastovalidia [21]

Answer:

Explanation:

2

4 0

3 years ago

Suppose Carla has $7000 to invest. Which investment yields the greater return over 4 years: 7% compounded quarterly or 6.85% com

o-na [289]

Answer:

The option with the quarterly compounding provides a higher future value.

Explanation:

Giving the following information:

Initial investment= $7,000

Number of years= 4 years

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

Quarterly compounding:

Interest rate (i)= 0.07/4= 0.0175

n= 4*4= 16

FV= 7,000*(1.0175^16)

FV= $9,239.51

Monthly compounding:

i= 0.0685/12= 0.00571

n= 4*12= 48

FV= 7,000*(1.00571^48)

FV= $9,200.07

The option with the quarterly compounding provides a higher future value.

6 0

3 years ago

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock

FromTheMoon [43]

Answer: Please find answers in explanation column.

Explanation:

a. Journal to record The issuance of the bond

Date Account Titles Debit Credit

Jan. 1 Cash $618,000

9% Bonds payable $600,000

Premium on Bonds payable $18,000

Calculation

Cash = 600,000 x 103% =$618,000

b. The accrual of interest and the premium amortization on December 31, 2020

Date Account Titles Debit Credit

Dec. 31 Interest expense $53,100

Premium on Bonds payable $900

Interest payable $54,000

Calculation

Interest = 600,000 x 9% = $54,000

Premium on bonds = 18,000 /20 = $900

Interest expense=$54,000- $900=$53,100

c.Journal to record The payment of interest on January 1, 2021. Date Account Titles Debit Credit

Jan. 1 Interest payable 54000

Cash 54000

d) Journal to record The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Date Account Titles and Explanation Debit Credit

Jan. 1, 2 Bonds payable $600,000

Cash $600,000

5 0

3 years ago