Answer:Debit , market, stated.
Explanation: An actual payment of interest from a payables account is always entered as a debit in that account ledger. Then when calculating the effective interest : it is the the difference between the cash payment based on the market interest rate and interest expense based on the stated interest rate.
Answer: Sold at a discount because the market interest rate was higher than the stated rate. S
Explanation:
the bonds was Sold at a discount because the market interest rate was higher than the stated rate. This is as a result of the bonds issued which were at a discount having its market price way lower than its face value. Bonds tends to be sold at a discount when the market interest rate has exceeded the stated rate of the said bond.
Answer:
Fixed deferred annuity
Explanation:
Fixed deferred annuity is a form of saving investment where interest is paid on the invested amount at a rate set by the investment company and defined in the contract , and the interest can be deferred into the future till a withdrawal is made from the annuity contract.
Taxes are not paid but deferred until withdrawal which allows the opportunity to control when to pay taxes , a good investment sense for long term investment.
This makes it a good investment for a risk adverse investor who will not require investment income until later years but its main goal is retirement income and preservation of capital.
Answer:
Delta
a) Error discovered on 1/1/17: Net income for 2015 is incorrect. The net income is too low by $525
b) Error discovered on 1/1/17: Net income for 2016 is incorrect. The net income is too high by $75.
c) Error discovered on 1/1/18: Total assets for 1/1/18 are incorrect. The assets are too low by $300 ($525 - $225)
d) Error discovered on 1/1/24: Retained earnings and total assets are correct.
Explanation:
a) Data and Analysis:
Cost of equipment on 1/1/15 = $525
Estimated useful life = 7 years
Salvage value = $0
Cost of equipment recorded as Repairs and Maintenance Expense
