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Lana71 [14]
2 years ago
15

Stanford issues bonds dated January 1, 2015, with a par value of $500,000. The bonds' annual contract rate is 9%, and the intere

st is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $463,140.
1. What is the amount of the discount on these bonds at issuance?

2. How much total bond interest expense will be recognized over the life of these bonds?

3. Prepare the amortization of the bond discount for the first payment period, using the effective interest method to amortize the discount.
Business
1 answer:
sveta [45]2 years ago
6 0

Answer:

Explanation:

Discount on bond = Par value of bond - Issued price of bond = 500,000-463,140=36,860

2)

500,000*0.09 = 45,000

22,500 semiannually

Amount repaid:

Six payments (22500*6)  135,000

Add: Maturity value 500,000

Total amount repaid 635,000

Less: Amount borrowed (463,140)

Total bond interest 171,860

Total bond interest expense recognized 171,860

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What is the fau and emergency management department’s campaign slogan?.
Aleks04 [339]

FAU and emergency management department’s campaign slogan is “FAU ALERT” or “ATTENTION FAU”. Read below about the usage of the slogan.

<h3>How does FAU use their slogan?</h3>

“ATTENTION FAU” is only utilised in messaging if an incident has the potential to suspend normal operations or affect life safety and/or destruction of University resources.

Therefore, the slogan is as provided above.

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3 0
2 years ago
The Federal Reserve purchases ​$8 million in U.S. Treasury bonds from a bond​ dealer, and the​ dealer's bank credits the​ dealer
Zinaida [17]

Answer:

The bank will be able to lend:

$42,105,263 ($8 million/ 0.19)

Explanation:

The above amount which the bank can lend from the $8 million received from the Federal Reserve for a customer is a function of $8 million deposit in a customer's account and the reserve ratio.  This is called the money multiplier.

The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.  The level of Reserves and deposit liabilities determine the amount a bank can lend out.

The process by which banks create more money than the physical money is called money creation.  This shows that a bank creates more money in the economy through its lending activities.

6 0
3 years ago
The Constitution expressly grants which of the following powers to Congress? a. to receive ambassadors b. to appoint judges c. t
lbvjy [14]

Answer:

d. to regulate interstate commerce

Explanation:

The United States Constitution has the commerce clause in Article 1 Section 8 which allows the Congress to control the commerce with other nations and among the states.

According to this clause, the Congress can regulate the commerce that takes place between states and because of that, the answer is that the  Constitution expressly grants the power to regulate interstate commerce to Congress.

3 0
3 years ago
You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how muc
makkiz [27]

Answer:

$112,807

Explanation:

To calculate the amount of money you borrowed, you have to use the formula to calculate the present value:

PV=FV/(1+r)^n

PV= pressent value

FV= future value= 647,514

r= rate= 6%

n= number of periods of time= 30

PV=647,514/(1+0.06)^30

PV=647,514/(1.06)^30

PV=647,514/5.74

PV=112,807

According to this, you originally borrowed $112,807 for this house.

5 0
3 years ago
Meir, Benson and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership's capital balances are as follows:
sertanlavr [38]

Answer:

Journal Entry

a) Debit Capital- Benson $138,000 Credit Capital-North $138,000

b) Debit Capital- Benson $138,000 Credit Capital-Schmidt $138,000

c) Debit Capital-Benson $138,000 Credit Bank $138,000

d) Debit Capital-Benson $138,000 Debit Capital-Meir $28,500 Debit Capital-Lau $47,500 Credit Bank $214,000

e) Debit Capital-Benson $138,000 Debit Accumulated Depreciation $23,000 Credit Cash $30,000 Credit Equipment $70,000 Credit Capital-Meir $22,875 Credit Capital-Lau $38,125

Explanation:

a and b are the same with the same amount of capital transferred from one partner to another partner, it is just a matter of derecognizing Benson and recognize North or Schmidt.

c) Partner Benson is paid cash her capital,

d) decrease in meir's Capital = 214,000-138,000 = 76,000*3/8= $28,500

   Decrease in Lau's Capital Account = $76,000 5/8 = 47,500

Excess funds are taken from capitals or income summary account of the partnership which will affect the capitals of the remaining partners

e)  Meir's Capital = $138,000 -(70,000-23,000+30,000)

                            = $138,000-77,000

                           = $61,000*3/8 =$22,875

Lau = $61,000*5/8 =38,125

The Capital Accounts of the remaining partners will increase because of the gain made on buying out the leaving partner.

8 0
3 years ago
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