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2 years ago

What is the interest expense on December 31?

Business

1 answer:

Ainat [17]2 years ago

4 0

The interest expense on December 31 of the first year is <u>$5,250</u>.

<h3>What is the interest expense on bonds?</h3>

The interest expense for a bond that has the same coupon rate as the market rate is always the same for all periods of the bond.

This shows that the bond was issued at neither premium nor discount but at par.

<h3>Data and Calculations:</h3>

N (# of periods) = 20

I/Y (Interest per year) = 7.5%

PMT (Periodic Payment) = $5,250 ($140,000 x 7.5% x 1/2)

FV (Future Value) = $140,000

Results:

PV = $140,000.00

Sum of all periodic payments = $105,000 ($5,250 x 20)

Total Interest = $105,000

<h3>Schedule</h3>

Period PV PMT Interest FV

1 $140,000 $5,250 $5,250 $140,000

2 $140,000 $5,250 $5,250 $140,000

Thus, the interest expense on December 31 of the first year is <u>$5,250</u>.

Learn more about the interest expense of bonds issued at par at brainly.com/question/16995383

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Which of the following is a function of a commercial bank? *

Zarrin [17]

Answer:

lending of depositor's funds

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3 years ago

Is Cab Service in the UK is Excellent Choice for Transport?

Andreas93 [3]

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2 years ago

Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,835. Her total gross earnings as of 9/30/16 were $104

ivann1987 [24]

Answer:

option (A) $212.97

Explanation:

Data provided in the question:

Gross earnings for the pay period ending 10/15/16 = $5,835

Total gross earnings as of 9/30/16 = $104,400

Social Security tax rate = 6.2%

Now,

Total earnings

= Gross earnings for the pay period ending 10/15/16 + Total gross earnings as of 9/30/16

= $5,835 + $104,400

= $110,235

since,The Social Security taxes are on a maximum earnings of $106,800 per year

therefore,

Sabrina's Social Security withheld from her 10/15/16 paycheck will be

= ( Total earnings - $106,800 ) × Social Security tax rate

= ( $110,235 - $106,800 ) × 0.062

= $3,435 × 0.062

= $212.97

Hence,

The answer is option (A) $212.97

7 0

3 years ago

Cost of Producing Guitars Carlota Music Company estimates that the marginal cost of manufacturing its Professional Series guitar

diamong [38]

Answer:

The total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.

Explanation:

Given,

C '(x) = 0.008x + 90 ................................... (1)

To obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month, we obtain the integral of equation (1) as follows:

$C(x)=\int\limits {C'(x)} \, dx = \int\limits {[0.008x + 90]} \, dx$

C(x) = (0.008 / 2) x^2 + 90x + F

C(x) = 0.004x^2 + 90x + F .......................... (2)

Where F is the constant.

Since total cost is the addition of the total cost and total variable cost, the F in equation (2) represents the total fixed cost per month.

Since the fixed costs incurred by Carlota are $8500/month, this implies that F = 8,500.

Substituting F = 8,500 into equation (2), we have:

C(x) = 0.004x^2 + 90x + 8,500 <-------------- Total cost per month

Therefore, the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.

7 0

3 years ago

A company bases its predetermined overhead rate on direct labor cost. For next year, total factory overhead cost is estimated at

AlekseyPX

Answer:

Allocated MOH= $18,750

Explanation:

Giving the following information:

The estimated total factory overhead= $300,000

Total estimated direct labor cost= $240,000.

The actual direct labor cost was $15,000.

First, we need to calculate the estimated overhead rate based on direct labor cost. Then, we can allocate overhead.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 300,000/240,000= $1.25 per direct labor dollar

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.25*15,000

Allocated MOH= $18,750

3 0

3 years ago