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Anvisha [2.4K]
3 years ago
14

Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $2500

00, pay interest annually on January 1, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2020? $236500 $246700 $250000 $238000
Business
1 answer:
Lerok [7]3 years ago
5 0

Answer:

$238000

Explanation:

The computation of the carrying value of the bond is shown below:

Given that

Face Value of Bonds = $250,000

Proceeds from issuance of bonds = $235,000

Before that we need to compute the following things

Now

Discount on Bonds Payable = Face Value of Bonds - Proceeds from issuance of bonds

= $250,000 - $235,000

= $15,000

Life of Bonds = 10 years

Now

Discount on Bonds amortized annually = Discount on Bonds Payable ÷ Life of Bonds

= $15,000 ÷ 10

= $1,500

Now

Discount amortized is

= Discount on Bonds amortized annually × expired life

= $1,500 × 2

= $3,000

Finally

Carrying Value of Bonds = Issue Price + Discount amortized

= $235,000 + $3.000

= $238,000

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Sholpan [36]

Answer:

The​ price/book ratio is 2.45

This price/book ratio indicates to shareholders that the company have a greater value than the book value, hence shareholders would buy more shares.

Explanation:

In order to calculate the​ price/book ratio we would have to calculate the following formula:

price/book ratio=Market price per share/Equity book value per share

Market price per share=price earnings ratio*earnings per share

Market price per share=$12.25*3

Market price per share=$36.75

Equity book value per share=stockholders equity/shares of common stock outstanding

Equity book value per share=$750,500/$50,000

Equity book value per share=$15.01

Therefore, price/book ratio=$36.75/$15.01

price/book ratio=2.45

The​ price/book ratio is 2.45

This price/book ratio indicates to shareholders that the company have a greater value than the book value, hence shareholders would buy more shares.

3 0
3 years ago
Customer World provides services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a ca
Triss [41]

Answer:

The answer is $1.55

Explanation:

From the question above, we have the following:

Money spent by customer = $65

Transaction fee = $0.25

Percentage charge = 2% of the total charge

We calculate the total transaction fee as follows:

2% of $65 will be = 0.02 X $65

=> $1.3

Recall that there is a transaction fee = $0.25.

Therefore, total transaction fee:

$1.3 + $0.25

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6 0
3 years ago
Today only, a table is being sold for $217 . this is 62% of its regular price. what was the price yesterday?
Troyanec [42]
If yesterday's price was the regular price then the equation $217=62%x can be used to solve for x. so x = $217/0.62=$350. To check the answer, multiply $350 by 0.62 = $217. In other words, x is the unknown regular price so 0.62 times x = $217 and then cross multiplying means dividing $217 by 0.62, to get the answer.
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Managers and leaders perform many tasks as a result of their goals and objectives. Even though many tasks may be completed as a
uysha [10]

Answer:

a). Paul - Planning

b). Santiago - Organizing

c). Mathew - Planning

d). Chioe - Organizing

e). Kelly Tomasz - Leading

f). Ava - Controlling

g). Michelle - Organizing

Explanation:

Planning is described as the process of setting up the goals for the organization and formulating a course of action to achieve the intended goals.

Organizing is followed by planning which aims to assign the resources in a specific manner to ensure the effective accomplishment of the goal.

Leading is the process of providing guidance or direction to the staff, employees, and workers and keeps them motivated to ensure the smooth functioning of the process and achievement of optimum output.

Controlling is the last step in which the performances are governed and assessed as per the standards to find any variation.

8 0
3 years ago
XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp
Verizon [17]

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

                    = $40

6 0
3 years ago
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