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mina [271]
3 years ago
14

On January 1, 2017, Whitefeather Industries issued 300, $1,000 face value bonds. The bonds have a five-year life and pay interes

t at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%. Calculate the amount of interest that occured on December 31, 2017.
Business
1 answer:
Ludmilka [50]3 years ago
4 0

Answer:

$15000

Explanation:

All types of bonds have some common characteristics which include;

- A face/par value

- A coupon rate (interest rate).

- Either redeemable/irredeemable or convertible.

The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).

The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.

In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).

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Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and produc
Juli2301 [7.4K]

Answer:

$4

Explanation:

Calculation to determine the minimum price the company would accept for the radios

Minimum price=Selling costs (40% variable)*$10

Minimum price=$4

Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE

6 0
2 years ago
When engaged to compile the financial statements of a nonissuer, an accountant should possess a level of knowledge of the entity
NeTakaya

Answer:

C. Stated qualifications of the entity's accounting personnel

Explanation:

According to my research of the steps that are usually taken when compiling the financial statements of a non-issuer, it can be said that the accountant should know the stated qualifications of the entity's accounting personnel. This is because they should know what the qualification are of the accountant that initially made all the financial statements to see if they actually knew what they were doing.

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

7 0
3 years ago
Que es el asiento contable
Blababa [14]

Answer:

En contabilidad, se denomina asiento contable al conjunto de anotaciones o apuntes contables que se hacen en el libro diario de contabilidad, que se realizan con la finalidad de registrar un hecho económico que provoca una modificación cuantitativa o cualitativa en la composición del patrimonio de una empresa.

8 0
3 years ago
What is the purpose of insurance
andreyandreev [35.5K]

Answer:

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.

Explanation: Refer to top

3 0
3 years ago
Increasing opportunity costs of producing goods imply that the production possibilities curve will be?
Artyom0805 [142]

Increasing opportunity costs of producing goods imply that the production possibilities curve will be bowed outward. In a recent Page One Economics: Money and Missed Opportunities, senior economic education specialist Andrea Caceres-Santamaria explains that opportunity cost is the value of the next-best alternative .

when a decision is made; it is what is forfeited. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs. A company owner wants to increase the number of production available. The potential worth of that money being spent somewhere else or saved for the future is known as the opportunity cost.

To learn more about opportunity cost, click here.

brainly.com/question/13036997

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6 0
1 year ago
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