VBN Company purchased 16,000 shares of its own no par value common stock for $8 per share on July 1, 2004. On August 15, 2005, they reissued 3,000 of these shares for $10 per share. On September 1,2005 , they reissued another 5,000 treasury shares for $6 per share. The journal entry prepared to record the reissue of the treasury stock on September 1, 2005 will include a: 1) Debit to Paid-in-Capital in excess of par for $4,000 2) Debit to Retained Earnings for $4,000 3) Debit to Paid-in-Capital, Treasury Stock for $10,000 4) Debit to Retained Earnings for $6,000

Answers

Answer 1

The correct answer is 4) Debit to Retained Earnings for $6,000.
When treasury stock is reissued, any excess of the original cost over the reissue price is recorded as a debit to Retained Earnings. In this case, the treasury stock was reissued for $6 per share, which is lower than the original cost of $8 per share. Therefore, there is a reduction in Retained Earnings.
The entry to record the reissue of the treasury stock on September 1, 2005, would be:
Debit: Retained Earnings $6,000
Credit: Treasury Stock $30,000 (5,000 shares x $6 per share)
Credit: Paid-in-Capital, Treasury Stock $24,000 (5,000 shares x $4 per share)
The debit to Retained Earnings reflects the reduction in earnings that occurred when the treasury stock was initially purchased at a higher cost.

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Related Questions

RWJ 6-3 Josephine is studying for FRL 3000 Exam, help her decide which compounding period produces the highest present value given a stated annual interest rate and a future value?
Group of answer choices
a.Monthly
b.Annual
c.Semi-annual
d.Weekly

Answers

If josephine wants to maximize the present value, she should choose a compounding period of "daily" if it is available.

the compounding period that produces the highest present value given a stated annual interest rate and a future value is "daily".

the more frequently compounding occurs, the higher the present value will be. in this case, the given s are monthly, annual, semi-annual, and weekly. however, none of these s represent compounding on a daily basis.

compounding daily would result in the highest present value compared to the given s. daily compounding allows for the interest to be calculated and added to the account balance more frequently, resulting in a higher accumulation of interest over time.

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builtrite preferred stock pays 4.5% dividend based on a par value of 60. the stock is currently selling at 68. if you purchase the stock, what is your expected return

Answers

If you were to purchase Builtrite preferred stock, your expected return would be 6.91%.

To calculate your expected return, you need to take into account both the dividend yield and the capital gains yield.

In this case, the annual dividend payout is 4.5% of the par value of 60, which is $2.70 per share. Dividing this by the current stock price of 68 gives us a dividend yield of 3.97%.

The capital gains yield, on the other hand, is the change in the stock price over a given period of time, expressed as a percentage. If you were to purchase the stock at 68 and it were to appreciate to, say, 70 over the course of a year, the capital gains yield would be (70-68)/68 = 2.94%.

To calculate your expected return, you simply add the dividend yield and the capital gains yield together. In this case, your expected return would be 3.97% + 2.94% = 6.91%.

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what is the primary role of individuals as participants in the money market?

Answers

Answer: Individuals purchase money market instruments via money market mutual funds

Explanation:

The primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

The Money markets constitutes financial institution who provides the money market instrument such as mutual funds to the Market participant.  

The Money market are essential to the economy because the excess reserves of investment with them are lend out and this boost the money supply of the economy.

Therefore, the primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

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Which of these terms refers to the group of all the product lines offered for sale by a company?
O Marketing mix
O Brand
O Product mix
O Target market

Answers

I think it’s marketing mix

The term where the group of all the product lines provided for the sales by a company is known as the product mix.

The information related to the product mix is as follows:

It refers to the product portfolio where it is the completed set of products or services that are provided by the firm.The product line is the subset of the product mix.An Example is Nescafe, maggie noodles, etc.

So the other options are to be considered incorrect.

Therefore we can conclude that the term where the group of all the product lines provided for the sales by a company is known as the product mix.

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Which of these terms refers to the group of all the product lines offered for sale by a company?O Marketing

business managers with high emotional intelligence are more effective at all of the following except multiple choice influencing others. collaborating in teams. showing leadership. multitasking. overcoming conflict.

Answers

Business managers with high emotional intelligence are more effective at all of the following except C) Multitasking.

It is well recognized that business managers with high emotional intelligence have a variety of abilities and traits that enable them to successfully handle challenging social and emotional situations at work. They can effectively communicate, forge bonds with others, and handle conflict while being able to identify and comprehend both their own and others' emotions.

The ability to manage numerous projects and priorities can be improved by emotional intelligence, but this does not necessarily mean that a manager will be more adept at multitasking. Focus, organization, and the capacity to handle several informational streams at once are necessary for multitasking, which is a cognitive skill.

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Question 4
Before you start making donations to not-for-profits you should write up a
business plan, give yourself a company name, and hire employees.
True.
False

Answers

Answer:

false

Explanation:

State 2 problems a startup company might have rasining
finance​

Answers

1. Fierce Competition

The corporate world is quite fierce. There is always a competition going on between the giants. Competition poses one of the biggest challenges for the survival of startup businesses. And if you have an online business startup, the competition gets tougher.

The competitive environment keeps the startups on their toes, as there is no margin of error available. Both B2B and B2C organizations always tend to feel the heat of the fierce competition. In order to survive in this competitive business environment that covers both traditional and online businesses, the startups need to play aggressively, and punch above their weight to gain the much needed recognition amongst the clusters of ever challenging and expanding businesses.

2. Unrealistic Expectations

Success does not come alone. It brings expectations with it. Most of the times, these expectations seem realistic, But in the real sense of the word, are merely unrealistic. This same concept holds true for young startups.

Startups tend to face challenges when they set ‘unrealistic expectations’ following a booming success. Remember, success is short-lived and expectations never end. This is where startups need to translate what the real expectations are? Sustainability is the name of the game. And sustainability requires consistent efforts.

the risk management framework is a flexible risk-based approach that integrates security, privacy, and cyber supply chain risk management into the system development life cycle. which phase of the framework involves determining the applicable controls needed to reduce business risk to an acceptable level?

Answers

The phase of the Risk Management Framework that involves determining the applicable controls needed to reduce business risk to an acceptable level is the "Select" phase.

In the Select phase, organizations identify the appropriate security, privacy, and cyber supply chain controls needed to manage risks effectively. They do this by considering the organization's risk tolerance, the specific threats faced, and the potential impacts on business operations.

Controls are chosen based on their ability to mitigate risks, in alignment with the organization's priorities and objectives. The selection process involves reviewing a comprehensive set of control catalogs and tailoring them to the organization's unique needs.

Once selected, the controls are documented in a System Security Plan (SSP) or equivalent document.

This phase is crucial in ensuring that the right measures are in place to protect the organization and its assets, while also enabling the successful implementation of the Risk Management Framework throughout the system development life cycle.

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If the volume sold reacts strongly to changes in price, demand: Select one: a. has no elasticity. b. has negative elasticity. c. is unrealistic. d. is elastic. e. is inelastic

Answers

If the volume sold reacts strongly to changes in price, it indicates that the demand is responsive to price changes. This concept is known as elasticity of demand.

To determine the elasticity of demand, we look at how much the quantity demanded changes in response to a change in price. If the volume sold changes significantly in response to a small change in price, then demand is said to be elastic. On the other hand, if the volume sold changes minimally in response to a large change in price, then demand is said to be inelastic.

In this case, since the volume sold reacts strongly to changes in price, we can conclude that the demand is elastic. This means that demand is sensitive to price changes, and a small change in price will result in a relatively larger change in the quantity demanded.

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WILL MARK BRAINLIST!

Why is it necessary to prepare a Trial Balance?

A Trial Balance is prepared to check whether the debit balance ___ the credit balance, which is the primary goal of accounting?

Answers

Answer:

Hello! Your answer shall be, BELOW

Explanation:

Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.

A Trial Balance is prepared to check whether the debit balance FOR the credit balance, which is the primary goal of accounting?

Hope I helped! Ask me anything if you have any questions. Brainiest plz!♥ Hope you make a 100%. Have a nice morning! -Amelia♥

Answer:

Equals

Explanation:

What is the organizational structure for an supermarket?

Answers

Answer:

An array of repeat customers grouped in various local areas, A chain of retail stores, various transportation systems,  A set of warehouse distribution centers, and An array of product suppliers under contract.

Explanation: In carrying out its function, a supermarket business acquires and assembles a wide assortment of goods from individual suppliers, then organizes and distributes them as-needed to a chain of retail stores for sale to local customers.

You work in a company that has snacks in the kitchen. You realize that a coworker never brings their own food or eats out, but instead eats 5-6 snacks each day. You’re aware that other employees help themselves to snacks, but limit themselves to 1 snack per day.

Answers

In case you worry about your colleague's frequent munching tendencies, try initiating a cordial and objective dialogue without any hint of criticism. Voice your concern regarding their welfare and enquire on how to assist them in choosing healthier snacks.

How should you treat this situation?

Additionally, it may be plausible that this coworker has an underlying medical condition or dietary limitation prompting he requires more snack breaks than what is perceived as normal practice. In such cases, supportive understanding will go a long way in the person's psychology boosting.

Furthermore, for workers who only snack once each day, disparities impact different dietary necessities and lifestyle preferences aside from health aspects. Hence, gauging an individual in line with someone else proves futile due to numerous factors at play.

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What is one measure of the success of a buisness

Answers

Answer:

Volume and frequency of sales.

Explanation:

Volume and frequency of sales can provide data on overall business success. You can break this down by sales to new customers, sales to existing customers, profit per sale, which products/services are making the most money, or any other categories that might be important to your business.

what benefits does a borrower receive from maintaining a positive credit history?

Answers

The borrower will get low interest rates meaning that the borrower will be able to pay off the debt faster

Which of these can lower the amount of monthly payments on a mortgage?
Insurance
Down payment
Property taxes
Collateral

Answers

Answer:

I think that the answer is collateral

Collateral is the item that can lower the amount of monthly payments on a mortgage.

What is collateral?

Collateral refers to item owned by a borrower, which is used as a guarantee that loan taken will be repaid.  It is an asset that a borrower offers to a lender as a promise that the payment of the loan will be repaid as agreed.

It is important to note that collateral is used to secure loan incase a borrow does not pay back the loan taken.

Hence, collateral is the one that can lower the amount of monthly payments on a mortgage.

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In a memo to all those involved in tax preparation, the IRS indicated that the mean amount of refund was $1600 with a standard deviation of $850. Assume the distribution of the amounts returned follows the normal distribution. What percent of the refunds were less than $900? Select one: Oa. 0.2061 Ob. 0.7939 Oc 0.1131 Od. 0.2939 Oe. 0.6808

Answers

In a memo to all those involved in tax preparation, the IRS indicated that the mean amount of refund was $1600 with a standard deviation of $850. The question asks about finding the percentage of refunds that were less than $900.  

The given problem indicates that we have to find the percentage of refunds that were less than $900. Let X be the random variable that represents the refund amount. Then X ~ N(1600, 850²), which means the mean and standard deviation of the distribution of the refund amount are 1600 and 850, respectively.

We have to find P(X < 900). Using the Z-score formula, we get Z = (X - μ)/σ = (900 - 1600)/850 = -0.8235. The probability of finding a value less than -0.8235 can be found from the standard normal distribution table. Using the table, we get P(Z < -0.8235) = 0.2061.

Therefore, the percentage of refunds that were less than $900 is 20.61%.Hence, the correct answer is option A.

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CVP analysis focuses on how profits are affected by ______. Multiple select question. unit variable cost total fixed costs selling price sales volume break-even point mix of products sold

Answers

Answer:

Total cost

Break even point

Mixed of product sold

unit variable cost

selling price

Sales volume A , B, C, D , E , F

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Mark brainliest

Cost-volume-profit (CVP) analysis focuses on how profits are affected by selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold. The correct options are a, b, c, d and f.

What is cost-volume-profit (CVP)?

Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit. Companies can use CVP to see how many units they need to sell to break even (cover all costs) or reach a certain minimum profit margin. CVP analysis makes several assumptions, including that the sales price, and fixed, and variable costs per unit are constant.

The cost-volume-profit analysis, also commonly known as breakeven analysis, looks to determine the breakeven point for different sales volumes and cost structures, which can be useful for managers making short-term business decisions.

CVP analysis makes several assumptions, including that the sales price and e, fixed and variable costs per unit are constant.

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Social security is 6. 2% of your total income. Suppose that your weekly pay is $850. For any given month, what is your total contribution to social security? hint: assume there are 4 weeks in a month. A. $198. 32 c. $208. 95 b. $205. 65 d. $210. 80.

Answers

Answer:

The answer is A.

Explanation: Thank you.


What are the two factors used to calculate productivity?
A. Goods produced and number of customers
B. Resources invested and goods lost
C. Goods produced and employees hired
D. Goods produced and resources invested

Answers

Goods produced and resources invested re the two factors used to calculate productivity.

How productivity is measured?

Productivity is measured from different factors in the organization like the profit generate from the sales, number of customer increases, the amount of money invested in the company, the goods that are consumed of sell within span of time and others.

Thus, option D is correct.

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Answer:

Goods produced and resources invested

Explanation:

Your reading material states that ________ is the key to successful human interaction on any level. A. Persistence b. Capitulation c. Compromise d. Assertiveness

Answers

Persistence is the secret to successful human contact at any level, according to your reading material.

What does being persistent mean?

1.: attempting to accomplish a task or continue to do something despite obstacles or requests from others to stop. A persistent salesman bugged us. He is one of the most steadfast opponents of the administration. She has pursued the job tenaciously.

What makes a person so persistent?

People that are persistent have an objective and vision in view that inspires and propels them. They frequently have a higher purpose for their lives than just making a living; they are dreamers and visionaries. Their vision is embedded profoundly, and they are intensely passionate and energetic in their ongoing attention on it.

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How many years would it take for money to increase to 3 times the initial amount at an interest rate of 18% per year?

Answers

Answer:

7 years (to the nearest year)

Explanation:

Given that;

A = amount

P= principal

t = time

r = rate

A =3P(given in the question)

Formula for compound interest;

A = P(1 + r)^t

Substituting values;

3P = P(1 + 18/100)^t

3P/P= (1.18)^t

3 = (1.18)^t

log 3 = t log 1.18

t = log 3/log 1.18

t = 0.4771/0.0719

t = 6.6 years

t = 7 years (to the nearest year)

If you had a choice how much are you willing to pay per month to have access to and use the various social media platforms?​

Answers

Answer: $10 per month

Explanation:

$10 would be an ideal amount for me to pay to have access to the various social media sites if the major sites are on offer.

I think this amount reasonable because I do not use social media all that much but I would still like access to a variety of them. I would essentially therefore, be paying for my reduced time on the net.

Some might say that the companies might not make a profit if they charge $10 a month but I think they will because they make most of their money from ads so it would be good for them to offer the lowest subscription prices so that they can capture more people which will appeal to advertisers.

the target market for a company manufacturing dolls is most likely to be young children.
T/F

Answers

True. A company manufacturing dolls would most likely target young children as their primary audience. However, the target market may also include parents or collectors of dolls.

It is important for the company to understand their target market in order to create products that will appeal to their customers. This includes understanding their needs, wants, and preferences, as well as their purchasing behaviors. When it comes to manufacturing dolls, the company must consider the safety and durability of the product, as well as the design and features that will appeal to their target market. This may involve conducting market research to understand what types of dolls are currently popular, as well as what features and designs are most appealing to young children.
Additionally, the company may need to consider factors such as price point and distribution channels in order to effectively reach their target market. By understanding their target market and tailoring their products and marketing strategies accordingly, a company manufacturing dolls can increase their chances of success in a competitive market.

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_____ include tools and equipment used to produce goods and services.
a. Capital resources
b. Consumer resources
c. Human resources
d. Natural resources

Answers

Answer:

The correct answer is B!

Explanation:

Consumer resources, include tools and equipment used to produce goods and services. Thus, option (b) is correct.

What is goods?

The term goods as the another name was the commodities. The goods are the sold to the exchange of the money. The goods are the produced with the help of raw material. The goods are the based on the two prices, such as the manufacturing prices and retail prices. The goods are the two types are the raw goods and the finished goods.

According to the manufactured goods and services as the companies are the manufacturing to the based on the consumer resources. The foundation is built on economic development. Factors of production are the resources used to create all commodities and services.

As a result, the consumer resources, include tools and equipment used to produce goods and services.

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E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1000 bond to convert the bond into five shares of the coporation's common stock. The debentures were issued for $10,800,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believe the differnece between the present value and the amount paid is attributable to the conversion feature. On January 1, 2014, the corporation's $30 par value common stock was split 2 for 1, and conversion rate for the bonds was adjusted accordingly. On January 1, 2015, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses a straight line method for amortizating any discounts or premiums.Instructions(a) Prepare in general journal form the entry to record the original issuance of the convertible debentures(b) Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computation in good form.

Answers

Answer:

A. Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

B.Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital $5,692,500

Explanation:

(a) Preparation of the journal entry to record the original issuance of the convertible debentures

Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

($10,000,000*8/100=$800,000)

(Being issue of share on convertible debenture)

b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method

Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital$5,692,500

($3,000,000+$2,700,000-$7,500)

(Being maintain the record of outstanding conversation of debenture)

Calculation for for BONDS CONVERTED

First step is to calculate the amortization for 2013

Amortization for 2013=$10,000,000/20

Amortization for 2013=$500,000

Second step is to calculate the amortization for 2014

Amortization for 2014=$10,000,000/20

Amortization for 2014=$500,000

Third step is to Calculate the premium on bonds payable

Premium on bonds payable=$10,000,000−($500,000+$500,000)

Premium on bonds payable=$9,000,000

Now let calculate the bonds converted

Bonds converted=$9,000,000×30/100

Bonds converted=$2,700,000

Calculation for COMMON STOCK

First step is to calculate the number of bonds

Number of bonds=$10,000,000/1000

Number of bonds=10,000

Second step is to calculate Price for the bond

Price for the bond=10,000×5

Price for the bond=50,000

Third step is to Calculate for Stock Split

Stock Split=50,000/2

Stock Split=25,000

Now let calculate the common stock

Common stock=25,000×30/100

Common stock=7,500

Calculation for BONDS PAYABLE

Bonds Payable=10,000,000×30/100

Bonds Payable=3,000,000

Answer:

my own answer is 7500x30=225000

The table shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.
real GDP consmption
600$ 590$
610$ 598$
620$ 606$
630$ 614$
640$ 622$
650$ 630$
660$ 638$
Refer to the above table. If planned investments were fixed at $16, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $630 initially. If government purchases were then raised from $0 to $4, other things constant, then the equilibrium real GDP would become
A) $650
B) $640
C) $630
D) $660

Answers

If government purchases were raised from $0 to $4, other things constant, then the equilibrium real GDP would become $640.

Explanation:

Given that

Planned investments = $16

Taxes = $0

Government purchases of goods and services = $0

Net exports = $0

Initially, equilibrium real GDP would be $630If government purchases were then raised from $0 to $4, other things constantTo find: The equilibrium real GDPInitially, equilibrium real GDP = $630Now, we need to determine the effect on equilibrium real GDP, when the government purchases rise to $4, other things constant.Since there is no effect of the government purchases of goods and services on taxes and net exports, therefore, the government spending multiplier is equal to 1.

Government spending multiplier (k) = 1∆Real GDP = k ∆Government purchases∆Real GDP = 1 × ∆Government purchases∆Real GDP = $4

Therefore,Equilibrium real GDP = Initially, equilibrium real GDP + ∆Real GDPEquilibrium real GDP

= $630 + $4 = $634

Hence, the correct option is (E) $640.

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When you purchase shares of a company in the market, who are you buying those shares from?

Answers

Answer:

Normally, you are buying those shares from someone who already owns them. You are not buying them directly from the company itself, but instead someone who owns shares from the company, called a shareholder or stockholder.

Explanation:

I hope this helps! :)

Investors in stocks could be large entities like commercial banks, or they could be individuals just like you. Rather than buying the shares from the issuing company, you buy them from someone who already owns them. Most major stock exchanges engage in trading from 9:30 am to 4 pm, known as trading hours.

Which career worker installs, maintains and repairs equipment used for communication?

Answers

Answer:

Telecommunications engineer.

Explanation:

Telecommunications can be defined as the scientific and technological process which involves the exchange of data (informations) from one user (sender) to another (receiver) at a distance, through a wired or wireless network connection. The transmission or exchange of these data (informations) are made possible through the use of electronic devices or equipments such as switches, routers, computers etc, which typically transmits electromagnetic waves, electric impulses, and packets.

Hence, these equipments or electronic devices require installation, configuration, repair and or maintenance, which are typically being done by a telecommunications engineer.

Therefore, the career worker who installs, maintains and repairs equipment used for communication is a Telecommunications engineer.

The amount of cash that will be collected in November is budgeted to be
A) $252,000
B) $218,500
C) $138,000
D) $290,500

Answers

The amount of cash that will be collected in November is budgeted to be $281,000. Thus, the correct answer is Option B.

To calculate the amount of cash that will be collected in November, we need to consider the sales for the preceding months and the corresponding collection percentages.

Here's the breakdown of the collections for each month:

August sales collection:

60% collected in August = $310,000 × 0.60

                                          = $186,000

September sales collection:

30% collected in September = $300,000 × 0.30

                                               = $90,000

October sales collection:

5% collected in November = $330,000 × 0.05

                                            = $16,500

November sales collection:

No collection occurs in November since it's the month of sale.

Now, let's add up the collections for November:

$186,000 (August collection) + $90,000 (September collection) + $16,500 (October collection) = $292,500

However, we also need to consider the uncollectible sales, which account for 5% of the total sales. So, we need to subtract the uncollectible amount from the total collections:

$292,500 - ($230,000 × 0.05)

 = $292,500 - $11,500

 = $281,000

Therefore, the amount of cash that will be collected in November is budgeted to be $281,000.

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Complete Question:

Natcher Corporation collects 60% of a month's sales in the month of sale, 30% in the month following sale, and 5% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are:

August budgeted sales

$310,000

September budgeted sales

$300,000

October budgeted sales

$330,000

November budgeted sales

$230,000

The amount of cash that will be collected in November is budgeted to be

A) $252,000

B) $281,500

C) $138,000

D) $290,500

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compounded semiannually.

Answers

Answer:

a. EAR for First National Bank  = 12.35%

b. EAR for First United Bank = 12.25%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compounded semiannually.

Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Explanation of the answers is now given as follows:

The effective annual rate (EAR) can be calculated using the following formula:

EAR = ((1 + (i / n))^n) - 1 .............................(1)

Where;

i = Annual interest rate of the bank

n = Number of compounding periods in a year

Therefore, we have:

a. Calculation of the EAR for First National Bank

i = Annual interest rate of First National Bank  = 11.7%, or 0.117

n = Number of compounding periods in a year = 12

Substituting the values into equation (1), we have:

EAR for First National Bank = ((1 + (0.117 / 12))^12) - 1

EAR for First National Bank = 1.12348257790079 - 1

EAR for First National Bank  = 0.12348257790079, or 12.348257790079%

Rounding to 2 decimal places as required, we have:

EAR for First National Bank  = 12.35%

b. Calculation of the EAR for First United Bank

i = Annual interest rate of First United Bank = 11.9%, or 0.119

n = Number of compounding periods in a year = 2

Substituting the values into equation (1), we have:

EAR for First United Bank = ((1 + (0.119 / 2))^2) - 1

EAR for First United Bank = 1.12254025 - 1

EAR for First United Bank = 0.12254025, or 12.254025%

Rounding to 2 decimal places as required, we have:

EAR for First United Bank = 12.25%

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