All categories

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

#SPJ1

You might be interested in

Ivan's, Inc., paid $482 in dividends and $586 in interest this past year. Common stock increased by $196 and retained earnings d

Svet_ta [14]

Answer:

$360

Explanation:

We can compute net income to be

The ending balance of retained earnings = Beginning balance of retained earnings + net income - dividend paid.

Where,

Dividend = $482

Change in retained earnings = $122

Hence,

Net income = Dividend - Change in retained earnings

= $482 - $122

Net income = $360

6 0

4 years ago

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb

Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

3 0

4 years ago

Jeffrey runs a small magazine, which has always been printed and mailed to subscribers. Jeffrey has dreamed of creating a way to

balandron [24]

affiliative leadership

7 0

4 years ago

The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is term

Nostrana [21]

Answer:

cost-volume-profit analysis

Explanation:

Cost-volume-profit analysis also known as breakeven analysis can be defined as a financial accounting method or technique used for determining the number of units a business firm must sell at a specific price so as to cover all of its costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.

Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;

1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.

2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.

Generally, basic break-even analysis is typically based on the principle that variable costs and revenues generated by a business firm or organization, increase in direct proportion to the volume of production i.e as the volume of production of a business firm increase, its variable cost and revenue generated also increases.

Hence, a cost-volume-profit analysis is mainly used by businesses or organizations to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

8 0

3 years ago

Unskilled immigrants take low-wage jobs in cities such as dubai and doha. these workers are most likely to come from:

tatuchka [14]

The workers are most likely to come from <span>India and Sri Lanka
In fact, if being added up, India and Sri Lanka almost made up 50% of the total population in the United Emirates Arab.
But still, the upper economic class in those nations still ruled by local monarchs from thsoe countries.</span>

8 0

3 years ago