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3 years ago

Trell Corporation transferred $50,000 of accounts receivable to a local bank. The transfer was made

Business

1 answer:

Arlecino [84]3 years ago

7 0

Answer: d. $6,500.

Explanation:

The question makes it seem quite complicated but it's not. In calculating the amount Trell will receive from the factor we do the following,

We take the fair value of Trell's 20% interest of $8,000 and subtract the factoring fee from it.

The factoring fee is,

= 50,000 * 3%

= $1,500

Subtracting it we have,

= 8,000 - 1,500

= $6,500.

Trell will show an amount receivable from factor of $6,500 so option D is correct.

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2 years ago

On January 1, 2020, Harter Company had Accounts Receivable $139,000,

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Solution and Explanation:

Date Particulars Post ref. Debit ($) Credit ($)

5- Jan Accounts Receivable 20000

Sales revenue 20000

(To record the sales revenue)

5- Jan Notes Receivable 30000

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( To record the note settlement of past due balance)

18- Aug Cash account 8360

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2 years ago

Moerdyk Corporation’s bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra

azamat

Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest (PVI)

RPV = 1,000 (1+5%)^-15 = $ 481 -A

PVI = 36.25 * Annuity factor =$ 759 -B

Future Value = A + B = $ 1,276

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

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3 years ago

What is the current yield for a $1000 corporate bond that pays 8.0 percent and has a current market value of $870?

alexandr402 [8]

The current yield for a corporate bond = 9.19 %

Calculation :

Amount of annual interest = face value × rate of interest

= $1000 × 8.0

= 8000%

Then, Current yield = amount of annual interest / current price

= 8000% ÷ $870

= 9.19 %

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Corporate bonds pay interest semi-annually, which suggests that, if the coupon is five percent, each $1000 bond can pay the bondholder a payment of $25 every six months--a total of $50 per year

What Is the Current Yield?

Current yield is an investment's annual income (interest or dividends) divided by the present price of the security. This measure examines the present price of a bond, instead of looking at its face value.

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1 year ago