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2 years ago

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of

Business

1 answer:

borishaifa [10]2 years ago

8 0

Answer:

c. interest paid over the life of the bond minus the amount of premium at sale

point.

Explanation:

when bonds are issued at premium the total interest cost of the bonds over the life of the bonds is equal to the amount of interest paid over the life of the bond minus the amount of premium at sale point.

From below journal entry you can see that, When interest payment is made cash is credited full amount but interest is debited after deducting amortised premium.

Journal entry if bonds are issued at premium

cash xx

Bonds Payable xx

Premium on bonds payable

Interest Expense xx

Preminum on bonds payable xx

cash xx

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Martin Inc. began construction on a building in 2020 and paying a construction company $600,000 in 2020. Martin also had avoidab

Mandarinka [93]

Answer:

$1,000,00

Explanation:

Amount paid to Construction company = $600,000

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So, amount to be capitalized in Martin's Building account = $600,000 + $90,000 + $180,000 + $36,000 + $64,000 + $30,000 = $1,000,000

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2 years ago

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Andreas93 [3]

Answer:

False

Explanation:

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2 years ago

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Vlad [161]

Answer:

Budget deficit / Fiscal deficit

Explanation:

At the start of the year, every government prepares a budget e.g. all sources of revenue (direct taxes, indirect taxes, aids etc) and projected expenses are also mentioned (development of society, defense etc.).

When a government spends more than its revenue from taxes so it means that government is running a budget deficit or a fiscal deficit which are covered through fiscal measures by government e.g. increasing taxes or reducing public spending.

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2 years ago

If a business is in need of working capital, one option is to use a(n) ________ that will buy the company's account receivables

vesna_86 [32]

Answer:

factoring company

Explanation:

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All of that is done for a fee to the factoring company (deducted from the full payment amount) and mostly with clients with whom it is normal to have longer payment periods. Factoring is an essential way to get bigger working capital.

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Sati [7]

Answer:

The correct answer is C) behavioral barrier.

Explanation:

Organizational barriers can be any number of things that range from physical elements to individual and group attitudes. They don't have to be important elements. They can be as simple as an extended absence of employees or as important as the acquisition of an organization by a foreign government. They can even be perceptions that have no basis in reality. The key to identifying barriers and eliminating their constrictive effect is to carefully identify all aspects of them.

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2 years ago