Answer:
a. $800
b. $1,000
Explanation:
In this case, the opportunity cost of holding the money instead of buying a U.S. Treasury bond is determined as the yearly interest payed by the bond.
a. interest rate = 8%
The opportunity cost of keeping the $10,000 is:

b. interest rate = 10%
The opportunity cost of keeping the $10,000 is:

<span>b. debit interest receivable for $500 and credit interest revenue for $500
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Answer:
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god bless u
Explanation:
Answer:
$304,500
Explanation:
Interest payable on December 31, year 1 = $290,000 * 5%
Interest payable on December 31, year 1 = $14,500
Total amount of liabilities to be reported on the Balance Sheet, year 1:
= $290,000 + $14,500
= $304,500
So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.