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mrs_skeptik [129]
3 years ago
9

On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and Dece

mber 31. The bonds were issued for $359,378, priced to yield 8%. What is the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1
Business
2 answers:
Andrei [34K]3 years ago
8 0

Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

Explanation:

interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.

The interest expense is calculated by these formula

Interest expense = Effective semiannual interest rate × Outstanding balance

Interest expense = (8% ÷ 2) × $359,378 = $14,375

So the interest expense is gotten as %14,375

GalinKa [24]3 years ago
8 0

Answer:

$14,375

Explanation:

Interest expense = Effective interest for first interest period × Period of time covered by adjusting entry.

Therefore:

Interest expense = 8%× $359,378 = $28,759.24

$28,759.24/2 = $14,375

The adjusting entry will record interest for the June 30 Year 1 will include a debit to Interest Expense in the amount of $14,375.

Hence,

Dr Interest Expenses $14,375

The amount of interest expense that should be accrued by chaco in an adjusting entry dated June 30, Year 1 is $14,375

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LO 7.2What operating budget exists for manufacturing but not for a retail company?
belka [17]

Answer:

Production Budget

Explanation:

Production Budget is usually substituted <em>with</em> Purchasing budget for a retail company.

The operating budget usually consist of the:

  • sales budget,
  • production budget,
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However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted <em>with</em> Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they<em> substitute </em>the number of units to be purchased, to the number of units to be produced.

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A winning strategy is one that results in a company becoming the dominant industry leader. fits the company's internal and exter
Anastasy [175]

Answer:

The options are not properly aligned.Find the same question with proper alignment in the attached.

A winning strategy fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

Explanation:

For a strategy to be tagged a winning one,it must carefully take into the consideration the internal and external environments that the business operates in,such that internal strengths and weaknesses can be discovered as well as external opportunities and threats.

In addition, it must also consider the capabilities ans skills peculiar to the business that are difficult to imitate by others, in essence competitive advantage.

Above all, the strategy must positively impact the bottom-line,in that the business records positive strong performances period after period.

Download xlsx
4 0
3 years ago
Other things the same, which bond would you expect to pay the lowest interest rate?
Elis [28]

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

3 0
3 years ago
You would like to use the fixed-order-interval inventory model to compute the desired order quantity for a company. You know tha
7nadin3 [17]

Answer:

c. 50

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Fixed-order-interval inventory model also known as fixed reorder cycle inventory model is used to manage supply of raw material to a business based on demand of the product. Review of inventory is done by inventory analyst at fixed intervals and of inventory level is above a predetermined reorder level, nothing is done.

If however stock is at or below set reorder level raw material is purchased and is based on the formula- Maximum level - Current level.

In the scenario above we use the following formula

Standard deviation of demand over the review and lead-time period(SD)=Square root of { (Lead time+ Number of days between review)* (Standard deviation of daily demand)^2}

SD= √ {(10+15)*(10)^2}

SD= √ (25* 100)

SD= √2,500

SD= 50

8 0
3 years ago
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Use "auto.Dta". The study claims that average price of foreign cars is more than average price of domestic cars. Check validity
Lynna [10]

Answer:

Yes.

Explanation:

Yes, the claim of statement ''The study claims that average price of foreign cars is more than average price of domestic cars.'' is correct because the cars which is imported from foreign countries have high duty on them. This duty tax on these cars make them very expensive while on the other hand, the domestic cars have no duty on it so they are lower in price as compared to foreign cars.

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