1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
max fischer is a beekeeper. his annual group insurance costs 11,700. his employer pays 60% of the cost. how much does max pay se
jasenka [17]

To solve for the semimonthly payments on Max's insurance cost:

Annual insurance rate: $11,700

Employer pays 60%

What is Max's amount to pay?

(11,700)(.60) = $7,020

Max's employer pays $7,020

Max pays $4,680 (11,700-7,020)

If Max pay's $4,680 a year and we want to know but he pays semimonthly, or twice a month then we need to divide his annual payment by 24 since there are 12 months and he pays twice a month.

($4,680/24)= $195

Max pays $195 semimonthly for his insurance.

6 0
3 years ago
Otis, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep w
Mandarinka [93]

Answer:

Panic

Explanation:

A panic attack is the abrupt onset of intense fear or discomfort that reaches a peak within minutes and includes at least four of the following symptoms: Palpitations, pounding heart, or accelerated heart rate. Sweating. Trembling or shaking. Sensations of shortness of breath or smothering.

7 0
3 years ago
Read 2 more answers
Which of the following functions of money would owning a house in a stable market be classified under?
adell [148]

Answer:

medium of exchange hope this helps

6 0
3 years ago
C&K Brewing Company is a microbrewery in western Canada. It produces Maiden’s Honor brand ale, a dark beer called Warrior’s
ehidna [41]

Answer:

The correct answer is letter "A": concurrent .

Explanation:

Concurrent control is adopted to regulate ongoing activities in an organization so that they can meet the company's standards. This type of control is chosen to ensure that the output will have the results expected. It implies measuring the quality of the processes at a certain point in time to determine to continue with them or not.

3 0
3 years ago
In statistical discrimination,
MakcuM [25]

Answer:D. Workers are given preferential treatment if they help fulfill a quota for particular type of characteristics.

Explanation:

Statiscal discrimenation is a preferential treatment of workers based on racial or gender inequality.

e.g restrictions of employment to singles because they have less responsibilities compared to the married.

5 0
3 years ago
Other questions:
  • Refer to the accompanying graphs for a competitive market in the short run. What will happen to the representative firm's econom
    13·1 answer
  • What is a stock market? What is an example of a stock market?
    7·2 answers
  • Which businesses make up the extractive industry
    14·1 answer
  • Mama's Pizza Shoppe borrowed $7,200 at 12% interest on May 1, 2021, with principal and interest due on October 31, 2022. The com
    12·1 answer
  • A thirty-year U.S. Treasury bond has a 4.0 percent interest rate. In contrast, a ten-year Treasury bond has an interest rate of
    10·1 answer
  • You have been asked to analyze the Value Net of the craft brewing and distilling industries in your state, and you have observed
    13·1 answer
  • The ________ reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well
    7·1 answer
  • Stoneside Inc. has provided you with the following information for its Manufacturing Overhead account at the end of the period.
    5·1 answer
  • Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying valu
    9·1 answer
  • A marketing strategy that enhances the shopping experience for experiential shoppers is called ________.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!