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Marina CMI [18]
3 years ago
11

A customer buys a new issue municipal bond with a dated date of January 1st, settling on February 1st. The first interest paymen

t is due March 1st. How many days of accrued interest must the customer pay to the underwriter
Business
1 answer:
yKpoI14uk [10]3 years ago
4 0

Answer: 30 days

Explanation:

The accrued interest is to be paid for the period beginning from the date of issue till the date of settlement. However, the date of settlement is not included which means interest will not be paid for the 1st of February.

That leave the 31 days of January for payment. With Municipal Bonds however, accrued interest is calculated assuming only 30 days in a month so January will have 30 days in terms of accrued interest.

30 days is the number of days that accrued interest must be paid to the underwriter.

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Explanation:

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What process has made it possible to create load-bearing glass?
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tempering

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3 years ago
Luthan Company uses a predetermined overhead rate of $22.60 per direct labor-hour. This predetermined rate was based on a cost f
Anit [1.1K]

Answer:

$248,600

Explanation:

The computation of amount of manufacturing overhead is shown below:-

Amount of manufacturing overhead would have been applied = Predetermined overhead rate × Actual direct labor-hours

= $22.60 × 11,000

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3 years ago
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.1. The likeliho
Setler [38]

Answer:

1. The likelihood of a payment occurring is probable, and the estimated amount is $1.14 million.

  • Dr Law suit loss 1,140,000
  •     Cr Law suit liability 1,140,000

2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.94 to $1.14 million.

  • Dr Law suit loss 940,000
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US GAAP allows companies to record probable losses at lowest estimated value.

3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.14 million.

  • no journal entry is required, only a disclosure in the footnotes of the financial statements.

A contingent liability (or loss) that is only possible, but not probable, does not need to be journalized and recorded. It only needs to be disclosed in the footnotes of the financial statements.

4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.14 million.

  • no journal entry is required

A contingent liability (or loss) that is remote, does not need to be journalized or recorded, nor included in the footnotes of the financial statements.

6 0
4 years ago
Which NIMS Management Characteristic involves using standardized names and definitions for major organizational functions and un
mylen [45]

Answer:

The correct answer is c) Common Terminology

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NIMS establishes a common terminology to work cooperatively with other organizations in some emergency scenarios, this is used to avoid confusion.

The common terminology usually is implemented in Organizational Functions (named by standard names), Resource Descriptions (named by capabilities) and Incident Facilities (common terms for clarity in an incident)

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3 years ago
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