Hen a note receivable is honored, cash is debited for the note's _______

On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $119 million. The bonds mature

Tamiku [17]

Answer:

Price of the bond is $104,236,860.

Explanation:

Given:

Coupon rate is 6% or 0.06

Face value = $119,000,000

Coupon payment each year = 0.06×119,000,000

= $7,140,000

Yield to maturity = 7% or 0.007

Maturity period = 30 years

Price of bond = Present value of face value + present value of coupon payment (annuity)

Price of bond = $119,000,000_{(PV\ 30,0.07)} + 7,140,000_{(PVA\ 30,0.07)}$

PV of $1 for 7%,30 periods = 0.1314

PVA of $1 for 7%,30 periods = 12.409

Substitute the values in above formula:

Price of bond = (119,000,000 × 0.1314) + (7,140,000 × 12.409)

= 15,636,600 + 88,600,260

= $104,236,860

There will be slight difference in final answer as present value table is used. Excel spreadsheet gives an accurate answer.

So, price of bond is $104,236,860

8 0

3 years ago

Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 6% on your investments

AURORKA [14]

Answer:

$12,015 approx.

Explanation:

To calculate present value of a future amount, the future amount is discounted at the rate of interest for the period of investment, which reveals present value as on today. The technique is referred to as discounting technique.

Suppose P denote the amount invested today, which when matured after period of two years yields $13500. Following formula is used for calculating the money invested:

$A =\ P (1\ +\ \frac{R}{100}) ^{n}$

wherein, A = Amount

P = Principal

R = Rate of interest

n = number of years

$13500 =\ P (1\ +\ \frac{6}{100}) ^{2}$

13,500 = 1.1236 P

⇒ P = 12,015 Approx.

Thus, $12015 is required to be deposited today so as to yield $13,500 after 2 years compounded at 6% per annum rate of interest.

5 0

4 years ago

Read 2 more answers

A service is any intangible offering that involves a deed, performance, or effort that

lisov135 [29]

Answer: cannot be physically possessed (B)

Explanation:

A service is a transaction where there is no transfer of physical goods from the seller to the buyer. Services are the action performed by an individual or firm for another person and are intangible in nature.

The satisfaction derived from a service are seen by the buyers willingness to pay for the service rendered to him or her. Public services are the services that the society pays for. Examples of services are car repair, haircuts, mail delivery, medical check-ups, and teaching.

7 0

3 years ago

An electronics store has a current inventory of 50 stereo systems. The lowest priced stereo system in the store sells for $800,

hammer [34]

Answer:

B) 32

Explanation:

let H = number of expensive high price stereo systems

let L = number of less expensive low price stereo systems

H + L = 50

3,000H + 800L = 110,000

H = 50 - L (now replace)

3,000 (50 - L) + 800L = 110,000

150,000 - 3,000L + 800L = 110,000

150,000 - 110,000 = 3,000L - 800L

40,000 = 2,200L

L = 40,000 / 2,200 = 18.18 ≈ 18 lower priced stereo systems

H = 50 - 18 = 32 higher priced stereo systems

(3,000 x 32) + (800 x 18) = 96,000 + 14,400 = 110,400

Even though the answer is not exact, if you had 33 high cost stereo systems, your inventory's cost = $112,600 which is $1,600 off

3 0

3 years ago

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 53,600 units, 75% complete w

GREYUIT [131]

Answer:

EU cost for direct labor $ 0,33

Explanation:

weighted average will be the transferred units plus percentage of completion on ending WIP

118,500 transferred + 43,600 x 25% = 129,400 units

labor cost on beginning WIP 9,800

added cost during the perod 33,000

Total cost 42,800

Equivalent untis cost: $ 42,800 / 129,800 = 0,329738

6 0

3 years ago

Hen a note receivable is honored, cash is debited for the note's ________ value