Answer:
Bond X $1,205.41
as it was issued at premium I expect the bond price to <u>decrease </u>as time passes to match the maturity value
Bond Y $820.69
As it is below face value and at maturity the company with the coupon will receive 1,000 this value of 820.59 will <u>increase </u>over time to match it.
Explanation:
The market value of the bond will the present value of the coupon payment and maturity considering the yield to maturity rate
Bond X
C 42.000 (1,000 x 0.084 / 2 )
time 34 (17 years x 2 payment per year)
rate 0.032 (0.064 annual / 2 semiannual )
PV $862.7309
Maturity 1,000.00
time 34.00
rate 0.032
PV 342.68
PV c $862.7309
PV m $342.6812
Total $1,205.4121
Bond Y
PV $573.8007
PV 246.89
Total $820.6873
Answer:
Job
Explanation:
A job is regular work that an individual does to make money. It is a position of full-time or part-time employment, piece of work, or a specific task that is to be undertaken. The primary motivation for undertaking a job is to be paid.
A job entails assuming responsibilities and duties as detailed in the job description.
Answer:
Dr cash $1,000,000
Cr Bonds payable $1,000,000
Being issuance of bonds at face value
Explanation:
The cash realized from the bond issue is $ 1,000,000.00 (1000*$1000) since the bonds were issued at par value of $1000 each.
The correct accounting entries for the bonds issuance would a debit to cash account of $1,000,000 and a credit to bonds payable account for the same amount.
The rationale for this is that cash increased,hence the asset account is debited and liability,bonds payable also increased.
Answer: $38,410,000
Explanation:
When recording investments in fixed assets, it is best to use the market value at the time.
The market value of the land will therefore be the relevant cost here.
Initial investment in fixed assets = Market value of land + Cost to build plant + Cost of grading
= 7,700,000 + 29,300,000 + 1,410,000
= $38,410,000
Answer:
a. $1508
Explanation:
June 1 150 units
June 10 200 units
June 15 200 units
June 28 150 units
Total 700 units
Out of above, only 210 units are in hand. Under LIFO method, 150 units are from 1st June and 60 units are from 10th June.
Date Units (a) Per unit cost (b) Ending inventory (a*b)
June 1 150 $6.93 (1040/150) $1.040
June 10 60 $7.8 (1560/200) $468
Total 210 $1,508
So, using the LIFO inventory method, the value of the ending inventory on June 30 is $1,508
