Why should a person care about his or her credit report?

Matt Winne, Inc. issued $ 1 comma 000 comma 000 of 9%, nine-year bonds payable on January 1, 2018. The market interest rate

alekssr [168]

Answer:

1) $1,223,163

2) bond premium amortization coupon 1 = $8,305

bond premium amortization coupon 2 = $8,554

3)

January 1, 2018, bonds are issued

Dr Cash 1,223,163

Cr Bonds payable 1,000,000

Cr Premium on bonds payable 223,163

4)

June 30, 2018, first coupon payment

Dr Interest expense 36,695

Dr Premium on bonds payable 8,305

Cr Cash 45,000

5)

December 31, 2018, second coupon payment

Dr Interest expense 36,446

Dr Premium on bonds payable 8,554

Cr Cash 45,000

Explanation:

bonds price = PV of face value + PV of coupons

PV of face value = $1,000,000 / 1.03²⁰ = $553,675.75

PV of coupon payments = $45,000 x 14.8775 (annuity factor 3%, 20 payments) = $669,487.50

issue price = $553,675.75 + $669,487.50 = $1,223,163.25 ≈ $1,223,163

Dr Cash 1,223,163

Cr Bonds payable 1,000,000

Cr Premium on bonds payable 223,163

amortization coupon 1 = $45,000 - ($1,223,163 x 3%) = $45,000 - $36,695 = $8,305

amortization coupon 2 = $45,000 - ($1,214,858 x 3%) = $45,000 - $36,446 = $8,554

4 0

3 years ago

Heidi, a vsc-certified volunteer, is working at the intake station. as part of her duties, she is required to explain to the tax

umka21 [38]

<span>Heidi should inform them that form 13614-C has to be completed before the return can be prepared, the client will then be interviewed by whomever is preparing the return and additional questions would likely be asked, and the client would need to have a quality review done on their taxes by someone other than the person preparing the return.</span>

5 0

3 years ago

Wilma, Betty, and Fred are partners who share income and losses in a 5:3:2 ratio. Wilma decides to retire from the partnership w

Hoochie [10]

Answer:

<u>debited</u>

Explanation:

Partnership refers to a mutual agreement wherein two or more individuals agree carry out a business and to share profits and losses in a specified ratio or as per the clauses of the partnership deed.

When partners retire, the balances standing to the credit of their capital accounts needs to be settled or paid off.

As per the given information, Wilma is paid $45000 in cash. The journal entry in this case would be:

Wilma's Capital A/C Dr. $45000

To Cash A/C $45000

For the remaining balance, Wilma shall be paid in cash as follows,

Wilma's Capital A/C Dr. $5000

To Cash A/c $5000

(Being settlement of a retiring partner's capital account being recorded)

3 0

3 years ago

Worth 20 points:)

dexar [7]

The act that created a “pay-as-you-go” system that requires Congress to raise enough revenue to cover increases in direct spending

B. the 1990 Budget Enforcement Act

Question2 Every hour, the federal government spends about

B. $250 thousand

Explanation:

The act came as a response to the impending recession the western markets in the 1990 fiscal year which was to hit USA particularly hard. This came as a result of and in contrast with many conservative measures taken by the President George W Bush Sr up until that point.

The president had been saying till then that the opposition and the population could read his lips that there will not be new taxes.

It did happen though as this law allowed the government to increase taxation rates to cover governmental spending.

4 0

3 years ago

Read 2 more answers

Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contribute

steposvetlana [31]

Answer: A: $0.None of the members recognize gain because their debt relief was not in excess of their bases in their LLC interest prior to any debt relief.

B: $55,000

C: $285,000

D: $625,000 Albee, LLC takes a $135,000 carryover basis in the assets Kevan contributes and a $490,000 basis in the total cash the other two members contributed.

Explanation: check attached file

3 0

3 years ago