Answer:
The invoice price for the bond is $1,060.38
Explanation:
Given the following:
PV= Par value = $1,000
,
CV= Clean Price = $1,049
Coupon Rate per annum = 6.83%
To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%
To calculate Semiannual Coupon= Semiannual Coupon Rate*PV
= 3.415% * $1,000 = $34.15
With an interest accured over 2 months, we calculate it thus:
Accrued Interest = $34.15 * 2/6
= $11.38
To calculate Invoice price:
Invoice Price = CP + Accrued Interest
Invoice Price = $1,049.00 + $11.38
Invoice Price = $1,060.38
Answer:
B. Advertising Expense 500 Prepaid Advertising 500
Explanation:
The journal entry is shown below:
1. Prepaid Advertising A/c Dr $2,000
To Cash A/c $2,000
(Being the prepaid advertising is paid)
2. Advertisement expense A/c Dr $500
To Prepaid Advertising A/c $500
(Being the adjusting entry is recorded)
Since for three-fourth is received, so one-fourth is still pending which would be
= $2,000 - $1,500 ($2,000 × 3 ÷ 4)
= $500
Answer:
Philip's country has followed the process of Dollarization.
Explanation:
Dollarization is the process of adopting a foreign currency instead of it own domestic currency. It is not necessary to adopt United States Dollar as your substituting currency in Dollarization. Any stable currency can be used instead of the domestic currency. Countries move towards the Dollarization when they have a weak domestic currency and they are in a threat of low buying power, and unstable economic environment. All these factors lead a country to go for substituting its domestic currency and choose a stable currency to control inflation and other unstable economic activities of the country. In this example, the value of currency of John's country depreciated over time and is expected to depreciate more in the coming months, so they went towards the process of Dollarization.
Answer:
Correct Answer:
c. joint tenancy with rights of survivorship
Explanation:
The property Jay owes on Gatsby Island belongs to him but he wishes to share th ownership with his 2 good friends. His conveyance of the message to both which reads <em><u>"tenants by the entirety"</u></em> <em>shows that he and his friends has equal ownership and rights to the Gatsby Island property.</em>
<em>In the event that either him or one of the friends dies, the full title of the property automatically passes to the surviving person.</em>
Answer:
Economic profit =$25,000
Explanation:
<em>Economic profit is the difference between revenue and implicit cost. Implicit cost is the sum of out-of-pocket accounting cost and opportunity cost.
</em>
<em>opportunity csot is the value of the benefit sacrificed in favour of a decision.
</em>
<em>Economic profit = Accounting profit - opportunity cost
</em>
Opportunity cost in Alex's situation is the interest lost or forgone by withdrawing the funds from an interest paying account.
Interest forgone = 5%× 500,000= $25,000
Economic profit = Revenue - cost of property - interest forgone
Economic profit = 550,000 - 500,000- 25,000=$25,000
Economic profit =$25,000
