<span>Given that,
Promissory note A = 5,500
Discount rate i = 12%
i = 12/100
Term n= 5 months
we know that,
1 year = 12 months
5 months= 5/12
So we get,
A = 5,500
i = 12/100
n= 5/12
To find the ada's proceeds on the loan formula is,
Proceeds=A(1+i)^n ........... (1)
Put the value of A,i,n in equ (1)
Proceeds=5500(1+12/100)^5/12
=5500(1+0.12)^0.417
=5500(1.12)^0.41667
=5500(1.04835)
Proceeds=5765.94
Therefore $5765.94 Proceeds on the loan</span>
In their simplest form, bonds are pure a) debt.
<h3>What are bonds?</h3>
- A bond may be a debt security, almost like an IOU.
- Borrowers issue bonds to boost money from investors willing to lend them money for a certain amount of time.
- When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
- In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
<h3>What sorts of bonds are there?</h3>
The main types of bonds are:
- Investment-grade
- Corporate bonds
- Municipal bonds
- High-yield bonds
To learn more about bonds: brainly.com/question/17405470
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Answer:
The answer is III) make simultaneous trades in two markets without any net investment.
Explanation:
Arbitrage is simultaneously buying an asset ( may be currency, securities...) in a low-priced market and sell it in a high-priced market.
As a results, the investor earns profit from price differences in the two markets without risk and net investment. It is because the two trading happens at the same time once price differences in any two markets are recognized ( arbitrage opportunities recognized) and the proceed of selling the asset is immediately used for financing/returning to the buying of the asset.
Thus, (III) is the correct answer.
Answer:
Allocated MOH= $18,750
Explanation:
Giving the following information:
The estimated total factory overhead= $300,000
Total estimated direct labor cost= $240,000.
The actual direct labor cost was $15,000.
First, we need to calculate the estimated overhead rate based on direct labor cost. Then, we can allocate overhead.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 300,000/240,000= $1.25 per direct labor dollar
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.25*15,000
Allocated MOH= $18,750
Answer:
Explanation:
Value assigned to bonds =
Value of bonds without warrants/(value of bonds without warrants+value of warrants)*Issue price
Value assigned to warrants =
Value of warrants/(value of bonds without warrants+Value of warrants)
Value assigned to bonds = 115,200/(115,200+28,800) * 140,000 = 0.8*140,000 = 112,000
Value assigned to warrants = 28,800/144,000 * 140,000 = 28,000
Journal entries:
Dr Cash 140,000
Dr Discount on bonds payable (171,000-112,000) 59,000
Cr Bonds payable 171,000
Cr Paid in capital-Stock warrants 28,000
