1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VashaNatasha [74]
2 years ago
11

On january​ 1, 2017, finch company issued​ $89,000 of​ five-year, 8% bonds when the market interest rate was​ 12%. the issue pri

ce of the bonds was​ $73,000. finch uses the​ effective-interest method of amortization for bond discount. semiannual interest payments are made on june 30 and december 31 of each year. how much interest expense will be recorded when the first interest payment is​ made? (round your answer to the nearest dollar​ number.)
Business
1 answer:
Amanda [17]2 years ago
8 0

Answer:

$4,380

Explanation:

The computation of the interest expense recorded in the first year is shown below:

= Issued price of the bond × market interest rate ÷ semi annual period

= $73,000 × 12% ÷ 2

= $73,000 × 6%

= $4,380

Hence, the interest expense would be recorded when the interest payment is made is $4,380

We simply applied the above formula

You might be interested in
Which of the following things can help you get a lower interest rate when you receive a loan?
Marta_Voda [28]
I you go for a shorter term your monthly pay will go up but you interet rate will lower. 
7 0
2 years ago
A recent Small Business Administration study found that commercial banks provide between ________ percent of the credit availabl
scoray [572]

Answer:

64%

Explanation:

Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.

Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.

However funds have been made available for small business and are made available primarily through commercial banks

7 0
3 years ago
XYZ Corp issued $600,000 of 9% , 10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. I
Rom4ik [11]

Answer:

c. $18, 750

Explanation:

The computation of the amount of interest expense i.e. accrued is shown below:

= Issued amount × yield on the bonds × given months ÷ total number of months in a year

= $562,500 × 10% × 4 months ÷ 12 months

= $18,750

The 4 months is calculated from July 1 to October 31

Hence, the correct option is c. $18,750

5 0
3 years ago
If there are two lawyers with similar experience and fees, you should make a decision by _____.
mash [69]

Answer:

If there are two lawyers with similar experience and fees, you should make a decision by asking other lawyers for recommendations.

4 0
3 years ago
Read 2 more answers
The federal government currently levies a 15.3 percent payroll tax (7.65 percent on both the employer and employee) on the wages
Lynna [10]

Answer:

c. fall primarily on employees

Explanation:

As the demand for labor is elasticc (if the business is not profitable will close) while the supply of labor more inelastic (worker had to work to sustain their living standards) the burden of taxation while in fact is assumed to be distributed equally what occurs is that labor is decrease to make the total cost (base wage plus taxes) the amount the employeer are willing to pay for the employee

4 0
2 years ago
Read 2 more answers
Other questions:
  • For Megan’s end-of-year performance appraisal, her supervisor solicited feedback from three of Megan’s coworkers, the manager of
    8·1 answer
  • Which of the following activities do marketers use as a way to lower product costs? A. Shop around for the best suppliers B. Off
    6·2 answers
  • American airlines traded eight 747s for twelve dc-10s owned by united airlines. this transaction is an example of
    13·1 answer
  • You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 39 comma 769 at
    7·1 answer
  • An estimated three-quarters of what product sold in naples originate in the black market?
    14·1 answer
  • What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally
    11·1 answer
  • Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's b
    13·1 answer
  • Economic systems differ according to which two main characteristics?
    8·1 answer
  • What can you create best in PowerPoint Online?
    11·1 answer
  • Advertising a home for sale in a minority area exclusively in a paper aimed at that minority group would most likely be regarded
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!