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egoroff_w [7]
2 years ago
13

Moss Co. issued $100,000 of five-year, 11% bonds with interest payable semiannually, at a market (effective) interest rate of 8%

. Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and Exhibit 10.
Note: Round to the nearest dollar.
Business
1 answer:
leva [86]2 years ago
7 0

The present value of the bond payable is $120,130.

<h3>What is the present value?</h3>

The present value of the bond is the sum of the the bonds discounted cash flows.

Present value can be calculated using a financial calculator:

  • Cash flow each year from period 1 to 10 : 11% x 100,000 = 11,000
  • Cash flow in period 20 : 100,000
  • Interest rate = 8%

Present value = $120,130.24

To learn more about present value, please check: brainly.com/question/26537392

#SPJ1

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Here are the answers: Ceteris Paribus, we would expect the following to be the cause of a decrease in the demand for the automobiles and these are: Increased gasoline prices, the expectations of the consumers that the prices of the automobiles will depreciate the following year and that the significant recession will develop and will last for a year. (Answers are based from the actual options attached to this question.)
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Answer: A microcomputer is a small computer that contains a microprocessor as its central processor.

Explanation:

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Which of the following statements is most accurate? Multiple Choice In process costing, estimating the degree of completion of u
kirza4 [7]

Answer:

C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

Which of the following statements is most accurate?

A. In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials.

B. The FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units.

C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.

D. The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period.

E. It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

EXPLANATION

FIFO method which is known as

(First In, First Out) can be regarded as an asset-management as well as valuation method , this method follows a process whereby any assets that is first produced or acquired are the asset that are sold first or first disposed. For the purposes of tax, FIFO gives assumption that assets that has oldest costs are usually entered into cost of goods sold I.e (COGS) income statements. Fifo can be calculated by finding the cost of oldest inventory, then multiply it by the amount of inventory sold.

It should be noted that The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory

8 0
2 years ago
Which of the following statements is correct? Group of answer choices The normal balance of revenue is a debit. The normal balan
kaheart [24]

Answer:

The normal balance of liabilities is a credit.

Explanation:

In the double entry system one account must be debited in order for the other to be credited.

There are different balances for each account. For the accounts with normal credit balance a credit causes it to increase while a debit decreases it.

For accounts with negative balance a credit reduces its balance while a debit increases its balance.

- Asset: Debit

- Expense: Debit

- Dividends: Debit

- Liability: Credit

- Owner’s Equity: Credit

- Revenue: Credit

- Retained Earnings: Credit

Liabilities are debt owed by a business. When payment is given out to settle a debt (a debit) it reduces to amount a business owes.

If more loans are collected (a credit) the liability figure increases.

So liability has a normal credit balance

5 0
3 years ago
Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim
jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr,                                             $560

            To Deferred revenue                                  $560

(Being cash is received)

2. Deferred revenue                             $336

            To Sales revenue                                         $336

(Being 12 months sales service is recorded)

3. Cost of goods sold                            $280

            To Inventory                                                 $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12)            $28

            To Service revenue                                      $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

3 0
3 years ago
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