Answer: $9,009
Explanation:
To find the Effective Interest Rate, you should convert the stated interest rate into a semi-annual interest rate as that is when interest is payable.
Effective interest Rate = 10% Per annum
= 10/2
= 5%
5% is to be paid Semi-annaully.
Interest Expenses for the first 6 months is therefore,
= Issue Price * effective interest rate
= 180,181 * 5%
= $9,009
$9,009 is the amount of effective interest expense that should be recorded for the six months ended June 30, Year 1.
Answer:
Hersey's bond = $1125.513
Mars bond = $1172.259
Explanation:
Hersey bond;
Period(t) = 10years = 40(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Using the both present value (PV) and compound interest formula ;
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]
PV =( 753.083251562) + (372.4306236)
PV = $1125.513
Mars bond;
Period(t) = 20years = 80(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]
PV =(1033.55451663) + (138.704569467)
PV = $1172.259
Answer: Balance sheets follow ALS
Explanation: ALS stands for Assets-Liabilities-Stock (equity).
So first, find all assets. Place them under "assets" and add/subtract as needed (most likely add). In your case it should look something like this:
ASSTES:
Cash $6,414
Receivables $2,662
Inventory $3,191
Prepaid Expenses $2,557
TOTAL CURRENT ASSETS: $14,824
LONG TERM ASSETS:
Land $16,643
Buildings $56,163
Equipment $2,750
TOTAL LONG TERM ASSETS: $75,556
TOTAL ASSETS: $90,380
Where total current assets are calculated by summing up the total short term assets and long term assets is the same but with long term assets. Finally total assets is the sum of both the long and short term assets. You then do the same for the liabilities and equity.
Answer:
b. false
Explanation:
The journal entry is shown below:
Cash A/c Dr $1,350 (450 shares × $3)
Paid in capital - Treasury stock $2,000
Retained Earnings A/c Dr $1,150
To Treasury Stock A/c $4,500 (450 shares × $10)
(Being treasury stock is sold at lower price and the remaining amount would be debited to the retained earning account)
Hence, the given statement is false
Answer:
External factors like the economy, politics, competitors, customers, and even the weather and internal factors such as staff, company culture, processes, and finances can influence an organization's Strategic Plan.
Explanation:
- The vertical and horizontal external business environment is composed of economic, political and legal, demographic, social, competitive, global, and technological factors while the organization's culture, product development, mission and strategy are all part of the internal institutional, resource-dependent, and contingent environments.
- Vertical and horizontal external environments are generally beyond the control of management and change constantly compared to internal institutional, resource-dependent, and contingent environments that managers have a great deal of control over.
A health leader operating in these environments can leverage on continuous study on how to adapt to the external business environment to ensure success
