Answer:
New Bond Price = $875.6574005 rounded off to $875.66
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or interest rate will be,
<u>For 3 year bond:</u>
Coupon Payment (C) = 1000 * 0.05 = $50
Total periods (n) = 3
r or YTM = 0.10 or 10%
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.1)^-3) / 0.1] + 1000 / (1+0.10)^3
Bond Price = $875.6574005 rounded off to $875.66
Answer:
He could afford to spend $133,411 for the device now.
Explanation:
The maximum the surgeon could afford for the device is equal to the sum of present value of the lawsuit costs that he can avoid in year 2 and year 5 which is:
+ Year 2: 600,000 * %out-of-pocket cost for the law suit = 600,000 * 10% = $60,000;
+ Year 5: 1,350,000 * %out-of-pocket cost for the law suit = 1,350,000 * 10% = $135,000.
=> The amount he can afford for the device = 60,000 / 1.1^2 + 135,000 / 1.1^5 = $133,411.
So, the answer is $133,411.
Answer:
Fixed asset turnover= 7.58
Explanation:
Giving the following information:
Sales revenue= $1,000,000
Fixed assets= $132,000
<u>To calculate the fixed asset turnover, we need to use the following formula:</u>
Fixed asset turnover= sales revenue / fixed assests
Fixed asset turnover= 1,000,000 / 132,000
Fixed asset turnover= 7.58
Answer: Company philanthropy
Explanation:
According to the given question, the company philanthropy is one of the concept that helps in promoting the corporate business for the welfare for generating the charitable donation in the non-profit organization.
The home-bound is one of the type of home decor firm that annually denoting the blankets to the various types of charitable trust or organization and this gesture is basically refers to the company philanthropy.
The philanthropy companies basically donating the various types of asset to the non-profit organizations for providing the services for helping the poor people.
Therefore, Company philanthropy is the correct answer.
Answer:
1. 30 JUNE Salaries Expense 10800 Dr
Salaries Payable 10800 Cr
1 JULY Salaries Payable 10800 Dr
Salaries Expense 10800 Cr
2 JULY Salaries Expense 18000 Dr
Cash 18000 Cr
2. 30 June Salaries Expense 10800 Dr
Salaries Payable 10800 Cr
2 July Salaries Expense 7200 Dr
Salaries Payable 10800 Dr
Cash 18000 Cr
Explanation:
1. We record the entry at the end of the fiscal period based on accrual principle and record the expense related to that period. This is why we debited the expense that was already due ( 18000/5 * 3) and recorded as an expense and as a payable as payment will be made on 2 July.
In reversing entries, we reverse an adjusting entry back on the start of next period. Then we record the entry again on payment day. The effect on expenses for this year, however, is unchanged as there is 10800 on credit side in Wages expense and the effect of crediting 18000 is still 7200 (18000- 10800).
2. If we don't pass a reversal entry, we just record the normal accrual entry at the end of the period and debit the liability ( Wages payable) and the remaining expense when payment is made on July 2.