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wolverine [178]
2 years ago
11

On December 31, 2021, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu

e of $95,000. The bonds have an effective interest rate of 6% and pay interest of $2,500 semi-annually on June 30 and December 31. The journal entry to record the interest payment on December 31, 2021 includes (Select all that apply.)
Business
1 answer:
Liono4ka [1.6K]2 years ago
4 0

Answer:

there are no options, but the journal entry should be:

Dr Cash 2,500

Dr Investment in bonds 350

    Cr interest revenue 2,850

Explanation:

Since the bonds' carrying value is less than the face value, it means that Gardner Company purchased them at a discount. When the bonds were purchased, the investment in bonds account's balance was not $100,000 (the par value), instead it was recorded at the lower amount at which they were purchased. As coupon payments are received, the discount on the bonds is amortized and their carrying value should increase until it reaches par value on maturity date.

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Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 perce
AlekseyPX

Answer:

50 billion

Explanation:

Investment declines by $130 billion for every 1 percentage point increase in the real interest rate.

Decline in Investment because of higher real interest rate:

= 2 × 100

= $200 billion

Increase in Investment because of higher expected rate of return:

= 1 × 150

= 150 billion

Total decline in investment:

= -200 + 150

= 50 billion

Therefore, 50 billion of investment will be crowding out.

8 0
1 year ago
Define and discuss the four common denominators of all organizations, and provide an example for each component. What is the dif
-BARSIC- [3]

Answer: The four common denominator of every organisation is a)common purpose, b) coordinated effort, c)division of labor, d) hierarchy of authority.

Explanation: Every organisation lembodied with these four common denominators:

1) coordination of effort - This is the formulation and enforcement of policies, rules, and regulations achieved through working together in a way that will maximize resources. individuals and groups contribute their effort through diverse skill sets to create value. For example every company consists of different diverse skill set- accountant, manager, clerk, security guard, etc all these people come together to fuse Thier skills in an effective running of any organization.

2)a common goal: This is achieved when every member of an organisation understands it's company's mission, strategy, and values, it tends to bring unity in the organisation and achieve success. For example When a new employee joins a business, he /she would try to fit into the existing culture which is due to a sense of belonging they feel that they will succeed by taking up the behaviors of people whom have had long membership in the culture and worthy of emulation.

3.) division of labor - This occurs when the common goal is pursued by individuals performing discrete parts of a task for greater efficiency for example in a production company Each worker performs a specific task . boosting productivity and efficiency.

4)hierarchy of authority- Also called the chain of command, is a control mechanism which aims to making people do the right things at the all times by enabling them make decisions quickly when necessary. Here order flows from the topmost pyramid of hierarchy to the lowest pyramid m for example

Nicholas receives a report from his Quality control team that a new drug has successfully passed all regulatory tests and is ready for production and sales to the public. Nicholas then sends directions to his head of finance to prepare a budget for financing the manufacturing and marketingof the new drug. He directs his marketing president to develop a marketing plan production manager to develop a production schedule based on the projected budget received from the finance manager.

Each managers will delegate part of their task to their respective department heads who will in turn, delegate some tasks to the members of respective team. Once the task has been completed, the information will flow back up through the hierarchy to Nicholas where it will be assessed and further decisions and directives will be made.

B)

---Open system: An Open system is an adaptive system with porous boundaries which allows exchange of ideas and information whether random or defined with useful feedback . It interacts with its outside environment and thus exchanges information to change thier system with changing conditions in terms of improvement and development. Examples include Hospitals, educational Sectors, Buisness organisation s etc.

--Closed systems, unlike open systems, are not adaptive, or porous. Only very thorough little information is exchanged.

A closed system does not need interactions with its environment and most times isolates from the environment to function effectively. Such systems are very a rare. Examples include the Millitary- army, Monasteries.

4 0
2 years ago
A rug manufacturer has decided to use 7 compatible colors in her rugs. however, in weaving a rug, only 5 spindles can be used. i
zubka84 [21]
The number of available colors is n = 7.
The number of colors that can be selected at a time among the 7 colors is r = 5.

This means that the number of selections of 5 colors from 7 colors at a time is ₇C₅.
By definition,
_{7} C_{5} = \frac{7!}{2!5!} = \frac{7.6.5!}{2.1.5!} = \frac{7.6}{2}=21

Answer: The number of color groupings is 21.


3 0
2 years ago
Read 2 more answers
On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J
mel-nik [20]

Answer:

The cash received from bond issuance is journalized as follows:

Dr Cash                                $285,600

Cr  Bonds payable                                  $280,000

Cr Premium on Bonds payable                   $5,600

The June 30 and 31 December Year 1 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

The June 30 and 31 December Year 2 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                             $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                            $8400

Explanation:

The amount realized from the bond is calculated thus:

$280,000*102%=$285,600

Premium on  bond=Bonds proceeds-par value

                                =$285,600-$280,000

                                =$5,600

Semi-annual amortization of bond premium=$5,600/5*6/12

                                                                         =$560

Semi-annual interest payment=$280,000*6%*6/12

                                                 =$8,400

5 0
1 year ago
When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that pe
Dimas [21]

Answer:

Option A is correct one.

Competing

Explanation:

When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that person is using the conflict-handling intention of <u>Competing.</u>

When one person seeks to satisfy his or her interests regardless of the impact on the other parties to the conflict, he is competing. The competition involves authoritative and assertive behaviours.

8 0
2 years ago
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