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allsm [11]
3 years ago
14

On January 1, Year 1, Weller Company issued bonds with a $260,000 face value, a stated rate of interest of 10.00%, and a 10-year

term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.00%. Interest is paid annually on December 31. Assuming Weller issued the bonds for $280,640, what is the carrying value of the bonds on the December 31, Year 3?
Business
1 answer:
Luden [163]3 years ago
3 0

Answer:

The carrying value of the loan in year 3 is $269,119.18

Explanation:

The carrying of the bond in year 3 comprises the loan opening book value in year 3 plus interest calculated on the opening balance using the yield to maturity less the  coupon payment calculated as a percentage of face value as computed in the attached excel file.

You would notice that the carrying values in years 1, 2 and 3 are $277,091.20,$273,258.50  and $269,119.18

Kindly find attached.

Download xlsx
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On January 1, 2020, Scottsdale Company issued its 12% bonds in the face amount of $3,000,000, which mature on January 1, 2030. T
BARSIC [14]

Answer:

It is $329,209.31  

Explanation:

Please attached sheet for computation.

Download xlsx
5 0
3 years ago
What economic challenge did the newly formed American federal government face? Which act created nationally chartered banks and
Nadya [2.5K]

Answer:

Inflation;National Banking Act ;Panic of 1907

Explanation:

What economic challenge did the newly formed American federal government face? Inflation

Which act created nationally chartered banks and circulated notes backed by the federal government? National Banking Act was pass during the Civil War, it was created so as to provide for nationally chartered banks, whose circulating notes had to be backed by U.S. government

What economic event led to the creation of the Federal Reserve?  Panic of 1907 resulted in the creation of Federal Reserve by the Congress due the wreaked havoc on the fragile banking system at that time

8 0
2 years ago
Read 2 more answers
Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an
Jobisdone [24]

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the  sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price                                                                     $365000

Installation fee for 3 months(3/6*$37000)                   <u>$18500</u>

Total revenue as at 31st March                                    $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

7 0
3 years ago
________ entails even closer economic integration and cooperation than a common market. Group of answer choices A customs union
Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

8 0
3 years ago
The adjusted trial balance for Chiara Company as of December 31 follows.
faust18 [17]

Answer and Explanation:

The preparations are presented below:

a. For income statement

<u>                                          Chiara Company</u>

<u>                                           Income statement</u>

<u>                                      For the year ended Dec 31</u>

Revenues

Fees earned                  $544,000

Interest earned              $30,000

Total revenues                                                              $574,000

Less: expenses

Depreciation expense - Automobiles   $26,000

Depreciation expense- Equipment       $20,000

Salaries expense                                    $187,000

Wages expense                                      $43,000

Interest expense                                    $32,200

Office supplies expense                        $34,200

Advertising expense                              $63,000

Repairs expense - Automobiles           $25,200

Total expenses                                                         ($430,600)

Net income                                                                $143,400

b. For a statement of retained earnings

<u>                                          Chiara Company</u>

<u>                                          Statement of retained earnings</u>

<u>                                            For the year ended Dec 31</u>

Beginning balance of retained earnings $257,220

Add: Net income                                        $143,400

Less: Dividend                                            -$45,000

Ending retained earnings balance              $355,620

c. For balance sheet

<u>                                          Chiara Company</u>

<u>                                        Balance sheet </u>

<u>                                        For the year ended Dec 31</u>

<u>Liabilities & equity            Amount                         Assets          Amount </u>

Liabilities & equity                                              Cash               $132,400

Accounts payable            $98,000          Accounts receivable $50,500

Interest payable               $20,000          Interest receivable $20,800

Salaries payable               $22,000         90 days notes receivable $171,000

Unearned fees                  $28,000         Office supplies              $16,500

Long-term notes payable $144,000       Automobiles 169,000

Common stock                  $26,580        Less:

Retained earnings             $355,620   Accumulated depreciation  

                                                               Automobiles $ 80,000         $89,000

Total liabilities & equity    $694,200  Equipment 140,000

                                                               Less:                                      

                                                               Accumulated depreciation

                                                                Equipment 23,000             $117,000

                                                                Land                                    $79,000

                                                                Total assets                        $694,200

3 0
3 years ago
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