80.2K

Verified Solution

Link Copied!

eBook Show ile How Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley issued $20,000,000 of five year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2071. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 2071, and amortization of bond premium for six months, using the straight- line method. If an amount box does not require an entry, leave it blank. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest. 3) Which of the following is NOT part of GDP calculated using the expenditure approach? A) General Motoes' paduses of new capital equipment B) ependitures by the federal government for national defence C) Social Security payments made to the elderly D) the purchase of new homes by consumers A shift in the aggregate expenditure cuvas Arrult of an increase in the price level results in a A) movement down along the aggregate demand curve. B) movement up along the aggregate demand curve. C) leftward shift in the aggregate demand curve D) rightward shift in the aggregate demand curve. Interest rate (percent per yeor) MD MD MD: Real money trillions of 2009 dollars) could 7) Use the figure above to answer this question. Suppose the economy is operating at point. A move to be explained by A) point ca decrease in the nominal interest rate B) point b; an increase in real GDP C) point de an increase in real GDP D) point an increase in the nominal interest rate

Answer & Explanation Solved by verified expert

See Answer