<span>When you buy a bond, you're lending your money to a company or a government (the bond issuer) for a set period of time (the term). The term can be anywhere from a year or less to as long as 30 years. In return, the issuer pays you interest. On the date the bond becomes due (the maturity date), the issuer is supposed to pay back the face value of the bond to you in full.</span>
Answer: $39,500
Explanation:
Service Cost for the year = Ending PBO - Opening PBO - Interest cost + Benefits paid
<u>Opening PBO</u>
Opening PBO is the amount that the interest was charged on.
Discount rate of 10% came out to be $7,500.
The opening balance = 7,500/10%
= $75,000
Service Cost = 112,000 - 75,000 - 7,500 + 10,000
Service Cost for the year = $39,500
Answer:
Explanation:
Bal as per cash book. $12,326
Add:
outstanding chq. $1,225
Overstated expenses. $27
Unknown credit. $566
Less:
Uncredited cash. $780
Direct debit. $449
Bank charges $23
Bank charge. $74
Bal in bank statement. $12,818
Answer:
B. A compound interest account
Explanation:
The option that would most help Patrick to meet these increases is the compound interest account
Compound interest accounts are those that calculates interest on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit. Hence compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.
Answer:
$99,100
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
The cash flow statement records only cash receipts and cash payments. So, only $99,100 would be considered in the investing activity