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zimovet [89]
3 years ago
14

Cullumber Company received proceeds of $1176000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $1

248000, pay interest annually on December 31, and have a call price of 103. Cullumber uses the straight-line method of amortization. What is the amount of interest Cullumber must pay the bondholders in 2019?
Business
1 answer:
Alik [6]3 years ago
6 0

Answer:

$74,880

Explanation:

The computation of the amount of interest Cullumber must pay the bondholders is shown below:

= Face value of the bond × interest rate

where,

Face value of the bond is $1,248,000

And the interest rate is 6%

So, the amount of interest paid is

= $1,248,000 × 6%

= $74,880

We simply multiplied the face value of the bond with the interest rate so that the amount of interest expense could come

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Complete the following statements using either "debit" or "credit":
Gekata [30.6K]

Answer:

a Debit

b Credit

c Debit

d Credit

e Credit

f Credit

g Debit

h Debit

i Debit

Explanation:

The rules are that increase in assets such as cash account ,delivery equipment,accounts receivable are debited while the reverse is done for reduction in assets.

The increase in liability accounts and revenue such as accounts payable and revenue account delivery fees are normally credited while the reverse applies to decrease in liabilities.

The increase in expense is normally debited while the reduction in expense is a credit.

The increase in capital account is a credit

4 0
4 years ago
Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determ
r-ruslan [8.4K]

Answer:

D. Use the majority of its promotional budget on advertising that focuses on brand differences.

Explanation:

3 0
3 years ago
At Ultrinsic.com, students pay a small entry fee to compete in grades-based contests for cash prizes. Suppose that 15 students f
vekshin1

Answer:

A. incentives

Explanation:

An incentive is a motivator to do something. Traditionally incentive is extrinsic, that is there is a reward given when an achievement is made. This is the rational for bonuses on the job. Where an employee is compensated for achieving a milestone at work.

Ultrinsic.com is using incentive of a cash reward for those that get As as a motivator for the students. Students pay an entry fee of $70 and if one student gets an A he will get the whole pool of funds. If more than one person gets an A they will share the money in the pool.

More students will be motivated to get As.

8 0
3 years ago
A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most
icang [17]

The restaurant worker's earnings closely resemble that of an employee working on commission plus salary.

<h3>What is commission?</h3>

Commission is additional compensation that's earned based on job performance.

It is an extra payment that is accrued during the course of work and are paid in addition to a base salary.

Hence, the restaurant worker's earnings closely resemble that of an employee working on commission plus salary.

Therefore, option D is the correct answer.

Learn more about commission here: brainly.com/question/26111961

4 0
3 years ago
Dee's Fashions has a growth rate of 5.2 percent and is equally as risky as the market while its stock is currently selling for $
emmasim [6.3K]

Answer:

12.6%

Explanation:

Using the Capital Market Pricing Model (CAPM) to compute the expected rate of return on Dee's Fashion stock.

Expected rate of return = R_{f} +\beta (R_{m} -R_{f} )

Where R(f) = risk free rate of return, or market return less risk premium = 12.6% - 8.7% = 3.9%

\beta = the risk of the stock relative to the market risk. In this case, beta = 1, since the company is equally as risky as the market (as noted in the question)

R(m) = return of the stock market = 12.6%

Therefore, the expected rate of return on the stock

= 3.9% + 1 * (12.6% - 3.9%)

= 3.9% + 8.7%

= 12.6%.

The return is the same as the stock market return because the stock is equally as risky as the market.

5 0
4 years ago
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