After asking yourself what you are good at and what you enjoy doing, you will be able to discover:

Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on De

kondaur [170]

Answer:

The bonds were issued at $220,879,628.13

This is lower than the face value to compensate for the lower coupon payment.

cash 220,879,628.13 debit

discount on BP 39,120,371.87 debit

bonds payable 260,000,000 credit

--to record the issuance of the bonds--

Interest expense 13,252,777.69 debit

Discoun on BP 252,777.69 credit

cash 13,000,000 credit

--to record the first interest payment--

Interest expense 13,267,944.35 debit

Discount on BP 267,944.35 credit

Cash 13,000,000 credit

--to record second interest payment--

Interest expense 13,539,156.67 debit

Discount on BP 539,156.67 credit

cash 13,000,000.00 credit

--to record Dec 31st, 2025 payment--

Explanation:

To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment:

260,000,000 x 10% x 1/2 =13,000,000.000

time 20 years x 2 payment per year 40

yield to maturity 12% / 2 = 6%

$13000000 \times \frac{1-(1+0.06)^{-40} }{0.06} = PV\\$

PV $195,601,859.3298

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 260,000,000.00

time 40.00

rate 0.06

$\frac{260000000}{(1 + 0.06)^{40} } = PV$

PV 25,277,768.80

PV c $195,601,859.3298

PV m $25,277,768.8042

Total $220,879,628.1340

For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.

first interest payment

$220,879,628.13 x 6% = 13,252,777.69

less actual cash outlay: 13,000,000

amortization 252,777.69

second interest payment

($220,879,628.13- $252,777.69) x 6% = 13,267,944.35

less actual cash outlay: 13,000,000.00

amortization 267,944.35

December 31st, 2025:

This will be payment 14th

after building the schedule until that date we got:

8 0

3 years ago

Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model plane

steposvetlana [31]

Answer:

Business strategy

Explanation:

The idea to compete in a remote model air-plane industry is a part of the business strategy of like real. This is a business strategy because the decision has been made to compete in an industry to gain more customers and to improve their share in the market. It will also help like real to strengthen their performance and organisational goals.

5 0

3 years ago

Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not i

Mice21 [21]

Answer:

2 years and 6 months

Explanation:

after 6months

$1,000 x 10% = $100

$1,000 + $100 = $1,100

after 1 year

$1,100 x 10% = $110

$1,100 + $110 = $1,210

after 1 year and 6 months

$1,210 x 10% = $121

$1,210 + $121 = $1,331

after 2 years

$1,331 x 10% = $133.10

$1,331 + $133.10 = $1,464.10

after 2 years and 6 months

$1,464.10 x 10% = $146.41

$1,464.10 + $146.41 = $1,610.51

4 0

3 years ago

How is the law of increasing costs similar to the concept of decision making at the margin?

amm1812

Helpppp usssss plzzzzzzzzzzzzzzzz

3 0

4 years ago

Although Lenin wanted to establish, for the short term, a state-capitalist economic system in Russia, which resembled the succes

SashulF [63]

Answer:

war communism

Explanation:

The necessities of the civil war pushed the government to a more radical economic system known as war communism. This were the economic policies that were introduced in Russia in 1918 towards the end of the first World War by Vladimir Lenin which was the leader of Russia at that time. This Economic Policy was terminated in 1921 and was deemed as a failure.

4 0

3 years ago