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
Explain how the basic economic problems are solved under capitalism?​
Brums [2.3K]

Answer:

Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.

The goods which are more in demand and on which consumers can afford to spend more, are produced in larger quantity than those goods or services which have lower demand. The price of various factors of production including technology helps to decide production techniques or methods of production. Rational producer intends to use those factors or techniques which has relatively lower price in the market.

Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.

Explanation:

7 0
2 years ago
If the level of incomes rises for high-income workers but doesn't change for low-income workers, then poverty will not change an
Aloiza [94]

If the level of incomes rises for high-income workers but doesn't change for low-income workers, "then poverty will not change and inequality will rise."

<h3>What is poverty?</h3>

Lack of resources to meet necessities like food, clothing, and shelter constitutes poverty. But poverty goes far beyond simply not having enough money.

According to the World Bank, poverty is as follows:

  • Hunger is poverty.
  • Absence of shelter is poverty.
  • Being sick and unable to visit a doctor is poverty.
  • Being illiterate and lacking access to education are both aspects of poverty.
  • Living day by day and not having a job are all signs of poverty.

Some faces of poverty is also-

  • Poverty has been characterized in a variety of ways and takes on several forms that vary from place to place and over time.
  • Most of the time, people desire to get out of poverty.
  • Therefore, poverty is a call to action for both the wealthy and the poor, a call to alter the world so that more people may have access to food, shelter, education, and healthcare, as well as protection from violence and a voice in local affairs.

Therefore, rarely is there a single source of poverty. Some people don't have enough money due to a number of circumstances, including growing living costs, low salary, unemployment, and insufficient social security benefits.

To know more about factors cause poverty in low-income nations, here

brainly.com/question/1985270

#SPJ4

7 0
2 years ago
______ allows you to earn money while caring for your own children.
aleksley [76]
A family day care allows you to make money while caring for your own children
7 0
3 years ago
Read 2 more answers
Name and briefly describe the three essential principles of test construction
Alika [10]
Three essential <span>principles of test construction are:
1. consistency. It refers  to the consistency </span><span>between the goal of the subject, course, and the methods of teaching goals. Also consistency between the methods and what the test measures. </span><span>
2. validity. Validity refers to t</span>he ability of a test to measure what it was designed to measure. It can be material od skill.
3. reliability. The <span>test must be constructed in such a way that it will produce reliable, consistent results .</span>
7 0
3 years ago
An outbreak of salmonellosis occurred after an epidemiology department luncheon, which was attended by 485 faculty and staff. as
liraira [26]

Out of the 485 who ate the same food items, 65 people had fever and diarrhea and five of them were severely affected. If there were 72 cases added based on the laboratory tests, clinically apparent cases will be (65+72) or 137. The ratio of severe cases to other clinically apparent cases was 5/137.

4 0
3 years ago
Other questions:
  • Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There i
    10·1 answer
  • 50 POINTS!!!
    15·2 answers
  • What are some stories that u motivated ur friend not to do
    9·1 answer
  • On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy
    15·1 answer
  • Imagine the following scenario: You have asked respondents to rate a certain product on the scale of 1 to 5. In the survey data
    13·1 answer
  • Phil deposits his money in the bank and earns _____. The bank uses part of Phil's money to make _____.
    8·2 answers
  • . Underwater Experimental is considering a project which requires the purchase of $498,000 of fixed assets. The net present valu
    10·1 answer
  • You buy one Huge-Packing August 50 call contract and one Huge-Packing August 50 put contract. The call premium is $1.95, and the
    9·1 answer
  • isabella takes $100 of currency from her wallet and deposits it into her checking account. if the bank adds the entire $100 to r
    15·1 answer
  • During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a progr
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!