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On January 1, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in 20 years, and pay 9% interest semiannu

Marina86 [1]

Answer:

1. How much interest will Boston pay (in cash) to the bondholders every six months?

semiannual coupon = $2,200,000 x 9% x 1/2 = $99,000

2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31.

a) January 1, 202x, bonds issued at par

Dr Cash 2,200,000

Cr Bonds payable 2,200,000

b) June 30, 202x, first coupon payment

Dr Interest expense 99,000

Cr Cash 99,000

c) December 31, 202x, second coupon payment

Dr Interest expense 99,000

Cr Cash 99,000

3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104.

a) January 1, 202x, bonds issued at 96

Dr Cash 2,112,000

Dr Discount on bonds payable 88,000

Cr Bonds payable 2,200,000

b) January 1, 202x, bonds issued at 104

Dr Cash 2,288,000

Cr Bonds payable 2,200,000

Cr Premium on bonds payable 88,000

3 0

4 years ago

In a business context, legal counsel is not only a primary and important source of information and advice but is also solely res

Yakvenalex [24]

In a business context, legal counsel is not only a primary and important source of information and advice but is also solely responsible for making decisions about how to resolve a dispute-This statement is false

Explanation:

Alternative dispute resolution options is one of the most popular way to settle legal matters without wasting Time and money in a court cases

There are three main types of formal alternative dispute resolution techniques that are used in the United States. They are

Mediation

In mediation alternative an independent mediator works with both the parties to come to a resolution.

Arbitration

Arbitration refers to the term voluntary, many people agree to participate in arbitration before a dispute ACTUALLY arises.

In an arbitration, both the parties agree to have their case heard by an impartial person who is refereed to as an arbitrator, who issues a final and binding decision.

An arbitration case is heard much faster and is less expensive than a court case

Collaborative Law

This is typically used in the resolution of family law setting as an alternative to litigating a divorce. It is different than mediation or arbitration in the sense that there is no neutral third party.

6 0

3 years ago

if the marginal tax rate is equal to the average tax rate as taxable incomme increases, the tax structure is

gregori [183]

Answer:

B) proportional

Explanation:

In the case of the proportional tax structure the marginal tax rate should be equivalent to the average tax rate without considering the high level of taxable income or low level of taxable income

Therefore in the given case, the tax structure should be proportional

hence, the correct option is B

And, the same is to be considered

5 0

3 years ago

Find the present value of $600 due in the future under each of these conditions: 6% nominal rate, semiannual compounding, discou

MA_775_DIABLO [31]

Answer and Explanation:

For computing the present value we need to apply the present value formula i.e to be shown in the attachment

For the first case i.e semi annual compounding

Given that,

Future value = $600

Rate of interest = 6% ÷ 2 = 3%

NPER = 9 years × 2 = 18 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $352.44

For the second case i.e quarterly compounding

Given that,

Future value = $600

Rate of interest = 6% ÷ 4 = 1.5%

NPER = 9 years × 4 = 36 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $351.05

For the third case i.e monthly compounding

Given that,

Future value = $600

Rate of interest = 6% ÷ 12 = 0.5%

NPER = 1 years × 12 = 12 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $565.14

Based on the various compounding i.e semi annual, quarterly and yearly the present value would be different in each case

8 0

3 years ago

Teams generally have which of the following effects on stereotypes and biases in the workplace? a. Teams will reduce communicati

MrMuchimi

I just took the test the answer is ,
- C : teams will reduce tensions between workers

3 0

4 years ago

Read 2 more answers