Answer:
4%
Explanation:
Interest included in $918000 is for six months from 10/1/18 to 4/1/12.
Interest for first three month period from 10/1/18 to 31/12/18 = $9000.
This implies that :
Interest from 1/1/19 to 4/1/19 = $9000.
Principal amount excluding interest due:
= Baker's obligation amount - Accrued interest - Accrued interest
= $918,000 - $9,000 - $9,000
= $900,000
Interest rate:
= [($9,000 × 12/3) ÷ 900000] × 100
= 4%
A = $9.99, the amount needed after 1 year
r = 0.018% = 0.00018, interest rate
n = 12, compoundings per year
t = 1, one year duration
Let P = required balance at the beginning of the year.
Then
P(1 + 0.00018/12)¹² = 9.99
1.00018P = 9.99
P = $9.988 ≈ $9.99
Answer: $9.99
False is the answer to this question.
<span>The bond is a written promise to pay the bond's par value and interest at a stated contract rate. </span><span>Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collection, are called coupon bonds.
</span><span>Bondholders detach coupons when they mature and present them to a bank or broker for collection.
</span>
Answer:
a. debit Notes Receivable for the face value of the note
Explanation:
The note will generate interest over time, but at the moment of receiving the note, <u>it hasn't accrued any interest,</u> so we have to only <u>record for the value of the note today.</u>
Also this note represent the right to claim cash from the person who sign the note, so <u>it is an asset for the company.</u>
Asset <u>increase from debit side</u>, so the Note Receivable will be debited.
