Magazines and journals are examples of periodical resources. True False

Tyrell Company issued callable bonds with a par value of $24,000. The call option requires Tyrell to pay a call premium of $500

Wittaler [7]

Answer:

case 1)

bonds payable 24,000

loss on retirement 5,000

discount on BP 4,500

cash 24,500

case 2)

bonds payable 24,000 debit

premium on BP 1,000 debit

gain on retirement 500 credit

cash 24,500 credit

Explanation:

we are going to write off the bonds payable and their discount account

we also debit the cash account for the amount of cash outlay to retire the bond

the difference between cash and the carrying value will be the loss on retirement when lower

and a gain on retirement when higher.

case 1)

carrying value 19,500

total cash outlay (24,500)

loss on retirement (5,000)

case 2)

carrying value 25,000

total cash outlay (24,500)

gain on retrement 500

3 0

3 years ago

Calculate the presentvalue of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b.

kaheart [24]

Answer:

Given:

Amount = $5000

Tenure = 5 years.

Future value = $Present value\times (1+r)^{n}$

where

n is number of periods

r is rate per period.

(a) 6% compounded annually.

Interest is compounded annually

No of periods in 5 years = 5

Future value = 5000 $(1+0.06)^{5}$ = 5000 × 1.33823 = $6691.15

(b) 8% compounded annually

Interest is compounded annually

No of periods in 5 years = 5

Future value =5000 $(1+0.08)^{5}$ = 5000×1.46933 = 7346.65

(c) 10% compounded annually

Interest is compounded annually

No of periods in 5 years = 5

Future value = 5000 $(1+0.10)^{5}$ = 5000×1.61051 = $8052.55

(d) 10% compounded semiannually

Interest is compounded semiannually

No of periods in 5 years is 5*2 = 10

Rate per period = 10÷2 = 5%

Future value =5000 $(1+0.05)^{10}$ = 5000×1.62889 = $8144.45

(e) 10% compounded quarterly

Interest is compounded annually

∴No of periods in 5 years = 5×4 = 20

Rate per period = 10÷4 = 2.5

Future value = 5000 $(1+0.025)^{20}$ = 5000×1.63862 = $8193.10

5 0

3 years ago

Generally the preferred method of making decisions within an organization is the

Lerok [7]

Generally the preferred method of making decisions within an organization is the rational model. This model is the preferred method for making decisions but generally it is pretty unrealistic for a company to obtain and adapt into their organization. This model tries to combine rational with structured deicsion aking for the best possible outcome.

4 0

3 years ago

Anna worked for over an hour trying to set up her new phone by going online to access the manual. She finally gave up and used t

Marina CMI [18]

Aware or informed - knowledgeable accessible

3 0

3 years ago

Momentum Rollerblades has three product lines: D, E, and F. The following information is available:

Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

D E F

Sales revenue $90,000 $40,000 $30,000

Variable costs ($40,000) ($10,000) ($10,000)

Contribution margin $50,000 $30,000 $20,000

Fixed costs ($10,000) ($5,000) ($25,000)

Operating income (loss) $40,000 $25,000 ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0

3 years ago