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kodGreya [7K]
3 years ago
14

Henry runs moonlight café, a world renowned fast-food restaurant, in his locality. he started the restaurant after getting a lic

ense from moonlight café and by regularly paying it a fee for the right to use its brand name, products, and methods of operation. henry most likely operates a(n) _____. a chain store b warehouse club c franchise d independent retail store
Business
1 answer:
m_a_m_a [10]3 years ago
7 0
Henry most likely operates a franchise. Franchise is a type of license - <span>an authorization granted by a government or company to an individual or group. the agreement enabling them to carry out specified commercial activities, for example acting as an agent for a company's products. In this case the activity is operating the Moonlight cafe.</span>
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On January 1 of this year, Trucks R Us Corporation issued bonds with a face value of $ 2,000,000 and a coupon rate of 10 percent
Anestetic [448]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c                                               Dr          $2199415

     To Bonds Payable a/c                                 $2000000                            

     To Premium on the issue of bonds            $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

Learn more about Bonds Payable amount here: brainly.com/question/7158291

#SPJ4

6 0
1 year ago
Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio
Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025]  +  1000 / (1+0.025)^8

Bond Price = $1000

5 0
3 years ago
Which of the following situations is the demand most likely to be reduced
Kay [80]

Answer:

The higher the price, the higher the producer's profits. Your needs and wants are unlimited. If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.

3 0
3 years ago
Can a manager yell at employees in front of customers answers
Setler [38]

Can you yell at your kids infront of other people. The answer is yes :)

5 0
3 years ago
How do we track stock market performance?
Lynna [10]
Go to the stock market holders, or look it up online

Hope this helps!
3 0
3 years ago
Read 2 more answers
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