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Lyrx [107]
3 years ago
8

Brief Exercise 9-17 Record early retirement of bonds issued at a premium (LO9-7)

Business
1 answer:
butalik [34]3 years ago
4 0

Answer:

Dr Bonds payable                       $50,700

Dr premium on bonds payable     $4,265

Cr Cash                                                                                 $53,000

Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965

Explanation:

The premium yet to be amortized on the bond at retirement is the carrying  value minus face value i.e  $54,965-$50,700=$4265

The premium  on bonds payable would now be debited with $4265

The cash paid on retirement would be credited to cash account

The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.

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Answer:

10.03%

Explanation:

Using the dividend discount formula, find the cost of equity; r

r = \frac{D1}{P0} +g

whereby,

D1 = Next year's dividend = 5.29

P0 = Current price of the stock = 79.83

g = growth rate of dividends = 3.40% or 0.034 as a decimal

Next, plug in the numbers to the formula above;

r = \frac{5.29}{79.83} +0.034\\ \\ r =0.06627 + 0.034\\ \\ =0.10027

As a percentage, r = 10.03%

Therefore, the company's cost of equity is 10.03%

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Primary data collection for a gaming software company could include the following methods except: Group of answer choices A Surv
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Answer:

A gaming software report from Gartner Group, a market research firm

Explanation:

Primary data collection is when data is collected through first hand research.

Primary data collection methods include

  1. Surveys : this can take the form of questionnaires (including online questionnaires e.g. survey monkey
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Advantages of primary data collection

  1. Directly addresses the reason for data collection
  2. Provides unique insight that might be unavailable elsewhere

Disadvantages of primary data collection

  1. It can be expensive
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Secondary data collection is collecting data that has already been collected in the past e.g. A gaming software report from Gartner Group, a market research firm

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Do you think scientific management made business more successful
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The investing activities will be those which represent a use of cash in securities, shares and note receivables and the cash inflow generate from this investment.

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