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kakasveta [241]
3 years ago
13

Five years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 6 percent. Today comparable bonds

are paying 6.5 percent. What is the approximate dollar price for which you could sell your bond?
Business
1 answer:
Pani-rosa [81]3 years ago
8 0

Answer:

$923.077

Explanation:

Data provided in the question:

Face value of the bond = $1,000

Interest rate = 6% = 0.06

Comparable interest rate = 6.5% = 0.065

Now,

The amount of annual interest  on the bond

= Face value × Interest rate

= $1,000 × 0.06

= $60

Therefore,

the approximate dollar price for selling the bond

= ( Dollar amount of annual interest ) ÷ ( Comparable interest rate )

= $60 ÷ 0.065

= $923.077

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Answer:

B. Cash 1,300  Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr

Explanation:

                             Kincaid Company

                                  Journal Entry

Date      Description                             Debit       Credit

              Cash                                      $1,300

                     <em>Accounts Receivable                      $1,200</em>

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6 0
3 years ago
Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in A
sveticcg [70]

Answer:

$61,500.

Explanation:

Given that,

Beginning cash balance on September 1 = $7,500

Cash receipts from credit sales made in August:

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= $105,000

Cash receipts from credit sales made in September:

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= $54,000

Cash disbursements from purchases made in August:

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= $75,000

Cash disbursements from purchases made in September:

= $120,000 × 25%

= $30,000

Ending cash balance September 30:

= Beginning cash balance + Cash receipts from credit sales made in August + Cash receipts from credit sales made in September - Cash disbursements from purchases made in August - Cash disbursements from purchases made in September

= $7,500  + $105,000  + $54,000  - $75,000  -  $30,000

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6 0
3 years ago
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Answer:

D

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Answer:

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