PLZ do all 5 question otherwise don\'t try to do else i will not rate it if you
ID: 2592599 • Letter: P
Question
PLZ do all 5 question otherwise don't try to do else i will not rate it
if you will do all 5 MCQ i will give 100%rating and good comments
and answer correctly
A bond issued by Starstrucks Inc. has a face value of $100,000 and was sold on January 1 The following bond has a stated interest rate of 10 percent and matures in 10 years When the bond was issued the market rate of interest was 10 percent. On December 31, the market rate of interest increased to 11 percent. What amount should be reported on December 31 as the bond liability? $100,000 $94,112 $98,000 O $87,562Explanation / Answer
Answer: $100,000
Since the stated interest rate and market rate when the bond was issued was 10%, the bond would have been issued at its face value of $100,000 which will appear as the bond liability on December 31.
Answer: None of the above are false.
All the three statements mentioned are applicable and true for treasury stock.
Answer: The change in the account balance should be subtracted from net income because the net increase in prepaid expenses did not impact net income but did reduce the cash balance.
Increase in prepaid expense means that there was a cash outflow however, the same impacted the current asset account and not the expense account and hence not the net income.
Answer: It is the amount of depreciation of an asset for 10 years.
The yearly depreciation expense is credited to the accumulated depreciation account. The accumulated depreciation account is a contra asset account with a net credit. Also, depreciation pertains to property, plant, and equipment and not to inventory hence, the other statements are incorrect in relation to the accumulated depreciation account.
Please note: There are only 4 MCQs and not 5 as mentioned. The fourth one is repeated twice.
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