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olga_2 [115]
3 years ago
15

Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1650375. The bonds mature January

1, 2031; interest is payable each July 1 and January 1. The discount of $99625 provides an effective yield of 11%. Sheridan Company uses the effective-interest method and plans to hold these bonds to maturity.
On July 1, 2021, Sheridan Company should increase its Debt Investments account for the Scott Company bonds by

a. $4981.
b. $3271.
c. $6541.
d. $9963.
Business
1 answer:
Oksi-84 [34.3K]3 years ago
4 0

Answer:

B) $3271.

Explanation:

Since Sheridan Company uses the effective interest method to account for Scott Company bonds, and it purchased them on discount, it must increase its debt investments by:

(market price x effective interest) - (face value x coupon rate) =  

($1,650,375 x .055) - ($1,750,000 x .05) = $3,270.63 ≈ $3,271

since the bonds pay a semiannual coupon, the yearly interest rates must be divided by 2.

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Answer:

Im pretty sure its Preforming arts

Explanation:

cuz i said

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In the labor market, what causes a movement along the demand curve? What causes a shift in the demand curve?
sladkih [1.3K]

Answer and Explanation:

Movement along the demand curve in the labor market occurs when there is any change in wages of labor. An increase in wage rate will lead to decrease in quantity of labor demanded. As a result, demand curve will move upwards and vice versa.

Reasons other that increase or decrease in price such as demand for the respective product, will lead to shift in demand curve. For example, an increase in the demand for a particular good will increase the demand for labor that will produce the product. An increase in demand for labor in this case will shift the demand curve rightwards and vice versa.

4 0
3 years ago
Bob and Susie wash cars for extra money over the summer. Bob's income is determined by f(x) = 6x + 13, where x is the number of
KatRina [158]
We are given with two functions: f(x) = 6x + 13 and g(x) = 4x + 18. We are given with h(x) which is associated with f(x) + g(x). The sum of  6x + 13 + 4x + 18 equal to 10x + 31 indicating  Bob will make more money working alone or by teaming with Susie.  The answer hence to this problem is C. h(x) = 10x + 31, team with Susie 
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3 years ago
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Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no
pantera1 [17]

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

= 6%

5 0
3 years ago
The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are
Vinil7 [7]

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha,  we need to do the following calculations

The interest amount  is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

= $200,000 + $28,000

= $228,000

And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

3 0
3 years ago
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