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Cloud [144]
3 years ago
11

A company issued $50,000 of 8%, 10-year bonds on January 1. The bonds pay semi annual interest. The present value factor of a si

ngle amount of 20 periods at 8% is 0.2145.The present value of 10 periods at 4% is 0.6756. The present value of 20 periods at 4% is 0.4564. Determine the present value of the par value of the bonds.
Business
1 answer:
Ad libitum [116K]3 years ago
8 0

Answer:

The present value of the par value of the bond is: $22,820.

Explanation:

As the characteristics of the bond, at the end of the bond period, which is 10 year, the bond's issuer will have to repay the face value of the bond to bond's holders. Thus, the future value of the bond = par value of the bond = 50,000.

As the bond pays coupon twice a year during 10 year with the coupon rate of 8% per year. There are 20 compounding periods, and the discount rate is 8%/2 = 4%. Thus, the present value factor of 20 periods at 4% is 0.4564 ( 1 / 1.04^20 ) should be used for calculating the present value of the par value of the bond.

 =>  Present value of the par value of the bond = future value of the bond x present value factor = 50,000 x 0.4564 = $22,820.

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Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000A
dexar [7]

Answer:

The correct option is C,$ 1,399,000

Explanation:

The items on the credit column would be the sum of  accounts payable, capital stock, notes payable and retained earnings  minus the payment of accounts payable and notes payable

Accounts payable is $220,000

capital stock is $680,000

notes payable is $520,000

retained earnings is $140,000

payment in respect of accounts payable is $150,000

payment in respect of notes payable is $11,000

total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00  

6 0
3 years ago
Horizon inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. the compan
hram777 [196]

This scenario illustrates that Horizon has failed to fulfill its <u>"Legal responsibility".</u>


There are legal responsibilities for most private companies. They will differ contingent upon the idea of the business.  

To stay away from issues later on it is imperative to comprehend your commitments. It is critical to know your commitments and legal responsibilities for working a business. This can be perplexing in light of the fact that directions can apply to a wide range of regions of your business.You are in charge of guaranteeing you have the right business enlistments and that they are kept up and recharged.  

6 0
3 years ago
On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract s
lesya692 [45]

Answer:

recorded on March 31, 2021.

Explanation:

As we know that if there is an accural basis so the revenue is recognized and recorded when it is earned here the receipt of cash is not material for recording the revenue

Since in the given situation, the date of completion of the contract is considered for recording date of revenue as per the accrual basis

So March 31, 2021 should be considered

 

5 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0
3 years ago
Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific," or "unsystematic
inysia [295]

Answer:

The correct answer is True.

Explanation:

Non-systematic risk, also known as "diversifiable risk", encompasses the set of factors of a company or industry, and that affect only the profitability of its stock or bond. For this reason they cannot be diversified.

In other words, the non-systematic risk arises from the uncertainty surrounding a company due to the development of its business, either due to the company's own circumstances or those of the sector to which it belongs. Examples of these events can be bad business results, the signing of a large contract, worse than expected sales data, a new product of the competition, discovery of fraud within the company, a bad management of its managers, etc.

8 0
3 years ago
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