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kaheart [24]
2 years ago
11

On January 2, 2017, a calendar-year corporation sold 5% bonds with a face value of $2500000. These bonds mature in five years, a

nd interest is paid semiannually on June 30 and December 31. The bonds were sold for $2292000 to yield 7%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2017?
Business
1 answer:
Oksanka [162]2 years ago
3 0

Answer:

Consider the following explanation

Explanation:

Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.

In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).

On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.

As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.

Download xlsx
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Answer:

Human Relations Approach

Explanation:

According to my research on studies conducted by various sociologists, I can say that based on the information provided within the question the approach being described is called the Human Relations Approach. Like mentioned in the question this approach refers to the view that the effectiveness of any organisation depends on the quality of relationships among the people working in the organisation.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago
When the economy is growing, total output is _____ and total income is _____.
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Increasing ,increasing
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2 years ago
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The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in t
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Answer:

AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows

VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.

Explanation:

Average Cost is the cost per unit off output.

Problems with AC as a performance measure :

  • It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
  • It's variance analysis during production & cost phases is very complicated.
  • It's result are deviant as evident from cash flows.

Variable Cost is the cost incurred on variable factors of production.

Problems with VC as a performance measure :

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3 years ago
Rapp and Wunderman are subsidiaries of large agency holding companies that provide services for companies that want to communica
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Answer:

The correct answer is letter "A": direct-marketing.

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Direct-marketing is a type of advertising that implies transmitting information about a product, service or entity directly to customers. Most of the time the promotional information is prompted without intermediaries but some times marketing agencies are hired for that specific purpose.

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2 years ago
Quick Corp. has $270,000 of outstanding accounts receivable. On March 10, 1988, Quick assigned a $30,000 account receivable due
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Answer:

quick

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Quick

Taft Bank is entitled to collect the money from Quick Corp. and not Pine because it failed to notify Pine of the assignment from Quick Corp. on time. So, now he can collect money from Quick Corp. only.

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3 years ago
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