Bankruptcy filings are given names according to

A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The

bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

3 0

3 years ago

Which statement is true?. . A. The value of money that you save increases over time.. B. The value of money remains constant ove

Marina86 [1]

The statement that is true among the choices given is option C. The presentvalue of money is greater than its future value. This statement is a fact and is always true. The present worth of a money is greater than its future value due to inflation. This is the principle called the time value of money.

3 0

3 years ago

Read 2 more answers

All of the following are characteristics of SMART goals except

g100num [7]

The answer is without limits

4 0

3 years ago

Read 2 more answers

The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per-

sladkih [1.3K]

Answer:

Results are below.

Explanation:

First, we need to calculate the break-even point in units with the desired profit:

Desired profit= $109,000

Break-even point (units)= (Total fixed costs + desired profit) / Weighted average contribution margin

Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin= (145*0.8 + 197*0.2) - (75*0.8 + 87*0.2)

Weighted average contribution margin= $78

Break-even point (units)= (827,000 + 109,000) / 78

Break-even point (units)= 12,000

For each product:

Nylon= 12,000*0.8= 9,600

Wool= 12,000*0.2= 2,400

Finally, the contribution margin income statement:

Sales= (9,600*145 + 2,400*197)= 1,864,800

Total variable cost= (9,600*75 + 2,400*87)= (928,800)

Contribution margin= 936,000

Fixed costs= (827,000)

Net operating income= 109,000

7 0

3 years ago

A bank is legally required to hold a fraction of its ________ as ________. deposits; required reserves deposits; excess reserves

GaryK [48]

A bank is legally required to hold a fraction of its deposits as required reserves. These regulations are a requirement and set by most banks around the world. They set minimum amounts that must be held all the type to serve as a reserve in case of an emergency.

5 0

3 years ago