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Norma-Jean [14]
3 years ago
9

On january 1 of year 1, congo express airways issued $3,700,000 of 6% bonds that pay interest semiannually on january 1 and july

1. the bond issue price is $3,360,000 and the market rate of interest for similar bonds is 7%. the bond premium or discount is being amortized at a rate of $11,333 every six months. the amount of interest expense recognized by congo express airways on the bond issue in year 1 would be
Business
1 answer:
erastova [34]3 years ago
6 0
<span>The amount of interest expense recognized by Congo Express Airways would be $199,334 after one year of being issued. This is calculated by finding 6% of the $3,700,000 which is $222,000. Then subtracting the amortized amount of $22,666 per annum, which was found by doubling the 6 month rate of $11,333. This gives you a total of $199,334.</span>
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<span>"To do this, Violet must follow these six steps:
</span><span>Define the problem.Identify the decision criteria.Allocate weights to the criteria.Develop the alternatives.Evaluate the alternatives.<span>Select the best alternative."</span></span>
4 0
3 years ago
A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 6%. These b
Dennis_Churaev [7]

Answer:

More than $500,000.

Explanation:

In the case when the coupon rate is more than the market interest rate so the bond would be on premium

And, if the coupon rate is less than the market interest rate so the bond would be on discount

And if both are equal so it should be in par

Now in the given case, since the rate of interest is 7% and the market rate of interest is 6% so it would be on premium

That means the bond price would sell at more than $500,000

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3 years ago
Charlton is the maker of a $200,000 promissory note payable to Development &amp; Sales Corporation. Development &amp; Sales indo
Slav-nsk [51]

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First Select Investors

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Although Charlton is the maker of the $200,000 promissory note payable, and was directly issued to Development & Sales Corporation, the party that issued it to Global Bank is First Select Investors.

Hence, Global Bank has direct link to First Select Investors and will notify the later about payment of their account receivable.

7 0
3 years ago
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Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costi
iren2701 [21]

Answer:

<u>a. $2,673 over applied</u>

Explanation:

a. Remember, it was mentioned that the company's predetermined overhead rate is $81 per hour of bandsaw use, although the actual hours of bandsaw use 153.

Calculating the results we have $2,673 over applied (actual value= $81*153-$15,066).

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6 0
3 years ago
In the past, jaleel's vacation time has been spent at home catching a few local attractions when she could afford them. this yea
vlabodo [156]

Answer:

a. the income effect.

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hence, the option a is correct

5 0
3 years ago
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