Regional economic group is defined as _______

A free enterprise system refers to: a. Economic assets that are privately owned and exchanged in an open market. b. Property own

bazaltina [42]

Answer:

a. Economic assets that are privately owned and exchanged in an open market.

Explanation:

A free enterprise is an economy where where economic factors like price, product, and services are determined by market forces and not by the government.

It is also called capitalism, economic assets are privately owned and competition is the yardstick for market success.

The opposite of this is communism where economic factors are controlled by the government.

7 0

2 years ago

What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differ

bogdanovich [222]

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

6 0

2 years ago

Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return

AysviL [449]

Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, <em>Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).</em>

4 0

3 years ago

a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project a

mylen [45]

Answer:

a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018

we must first determine the market price of the bonds:

PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779

PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820

market value of the bonds = $753,779 + $1,370,820 = $2,124,599

January 1, 2018, bonds are issued at a premium

Dr Cash 2,124,599

Cr Bonds payable 2,000,000

Cr Premium on bonds payable 124,599

b. Prepare a bond amortization schedule up to and including January 1, 2022

since we are not told which amortization method to use, I will use the straight line method.

Date Interest Cash Premium Carrying

expense paid amortization value

7/2018 $103,770 $110,000 $6,230 $2,118,369

1/2019 $103,770 $110,000 $6,230 $2,112,139

7/2019 $103,770 $110,000 $6,230 $2,105,909

1/2020 $103,770 $110,000 $6,230 $2,099,679

7/2020 $103,770 $110,000 $6,230 $2,093,449

1/2021 $103,770 $110,000 $6,230 $2,087,219

7/2021 $103,770 $110,000 $6,230 $2,080,989

1/2022 $103,770 $110,000 $6,230 $2,074,759

c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.

bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230

January 1, 2020, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

January 1, 2021, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

d. Prepare the journal entry to record the bond called on January 2021 at 106

Dr Bonds payable 2,000,000

Dr Premium on bonds payable 87,219

Dr Loss on retirement of debt 32,781

Cr Cash 2,120,000

5 0

3 years ago

Blossom Company purchased equipment for $303,200 on October 1, 2020. It is estimated that the equipment will have a useful life

givi [52]

Answer:

Answer A = $9,000

Answer B = $6,400

Answer C = $7,632

Answer D = $54,000

Answer E = $71,063

Explanation:

[ find attachments for complete solutions]

Note: Complete question is attached to the attachment section

5 0

3 years ago

Regional economic group is defined as ________.