A(n) _____ is an organization of talented artists who work for advertisers and occasionally subcontract to advertising agencies.
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You question is missing some data.so i am adding a sample question matching the above conditions.i hope it will help.
You have just taken out a $15,000 car loan with a 8% APR compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go towards the interest? (Dont round intermediate steps to six decimal places)
Round answers to nearest cent
Explanation:
Please find attached file for complete answer solution and explanation of same question.
Answer:
The bonds were issued at $220,879,628.13
This is lower than the face value to compensate for the lower coupon payment.
cash 220,879,628.13 debit
discount on BP 39,120,371.87 debit
bonds payable 260,000,000 credit
--to record the issuance of the bonds--
Interest expense 13,252,777.69 debit
Discoun on BP 252,777.69 credit
cash 13,000,000 credit
--to record the first interest payment--
Interest expense 13,267,944.35 debit
Discount on BP 267,944.35 credit
Cash 13,000,000 credit
--to record second interest payment--
Interest expense 13,539,156.67 debit
Discount on BP 539,156.67 credit
cash 13,000,000.00 credit
--to record Dec 31st, 2025 payment--
Explanation:
To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12
Coupon payment:
260,000,000 x 10% x 1/2 =13,000,000.000
time 20 years x 2 payment per year 40
yield to maturity 12% / 2 = 6%
PV $195,601,859.3298
Maturity 260,000,000.00
time 40.00
rate 0.06
PV 25,277,768.80
PV c $195,601,859.3298
PV m $25,277,768.8042
Total $220,879,628.1340
For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.
<u>first interest payment </u>
$220,879,628.13 x 6% = 13,252,777.69
less actual cash outlay: 13,000,000
amortization 252,777.69
<u>second interest payment</u>
($220,879,628.13- $252,777.69) x 6% = 13,267,944.35
less actual cash outlay: <u> 13,000,000.00</u>
amortization 267,944.35
December 31st, 2025:
This will be payment 14th
after building the schedule until that date we got: