1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lana71 [14]
3 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]3 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

You might be interested in
Justine has just started a company that makes notebooks and other stationery items out of recycled materials. She has decided to
Zigmanuir [339]

Answer:

10% is a high-profit margin

Explanation:

Since Justine is just starting her new business this might actually be a bad idea because 10% is a high-profit margin. In new business, you need to start off with very small profit margins in order to attract customers with low prices and grow a loyal customer base. Once the business begins to grow and sales start kicking up then you may begin increasing your profit margins.

4 0
3 years ago
Does the Constitution set down the rights of the people? Yes or No
Dmitry_Shevchenko [17]

Answer:

yes

Explanation:

the constitution does set down the rights of the people like right to freedom and right to equality

4 0
3 years ago
Read 2 more answers
A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources
PtichkaEL [24]

Answer:

is not attainable for this nation

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift  

1. changes in technology.  

2. changes in available resources.  

3. changes in the labour force.  

8 0
3 years ago
Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit
ddd [48]

Answer:

A. Material 200,000

Conversion 170,000

B. Materials $ 1.80

Conversion $ 1.55

C. Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000

D. Cost of beginning work in process inventory $50,000

Costs added to production during the period $573,500

Explanation:

A. Calculation for the Blending Department's equivalent units of production for materials and conversion in June.

Equivalent units of production:

Materials

Transferred to next department

160,000

Equivalent units in ending work in process inventory:

Materials: 40,000

(40,000 units × 100% complete )

Equivalent units of production 200,000

Conversion

Transferred to next department

160,000

Add Conversion10,000

40,000 units × 25% complete

Equivalent units of production 170,000

B. Calculation for the Blending Department's cost per equivalent unit for materials and conversion in June.

Cost per equivalent unit:

Materials Conversion

Cost of beginning work in process $25,200 $24,800

Cost added during the period 334,800 238,700

Total cost $360,000 $263,500 (a)

Equivalent units of production

200,000 170,000 (b)

Cost per equivalent unit (a) ÷ (b) $ 1.80 $ 1.55

Materials =($360,000÷200,000=$ 1.80)

Conversion=($263,500÷170,000=$ 1.55)

C. Calculation for the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.

Materials Conversion Total

Ending work in process inventory:

Equivalent units 40,000 10,000

Cost per equivalent unit $1.80 $1.55

Cost of ending work in process inventory $72,000 $15,500 $ 87,500

Units completed and transferred out:

Units transferred to the next department 160,00 160,000

Cost per equivalent unit $1.80 $1.55

Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000

D. Preparation of a cost reconciliation report for the Blending Department for June

Cost of beginning work in process inventory $50,000

($25,200 + $24,800)

Costs added to production during the period $573,500

($334,800 + $238,700)

3 0
2 years ago
Ethical standards in business are principles or codes for how a business conducts itself with ___, customers, and the public.
k0ka [10]

Answer:

B. Employees

Explanation:

3 0
3 years ago
Read 2 more answers
Other questions:
  • Alden is beginning to learn how to write. he can hold a pencil in one hand and steady the paper with his other hand. this new ab
    9·1 answer
  • 5. Consider the supply chain involved when a customer orders a book from Amazon. Identify the
    13·1 answer
  • Which of the following is an example of a capital market instrument? Group of answer choices Banker's acceptances. Commercial pa
    12·1 answer
  • The following information pertains to the January operating budget for Casey Corporation. times Budgeted sales for January $ 200
    11·1 answer
  • The least likely factor a business will use to determine a benchmark is
    7·1 answer
  • If a company is operating beyond its break-even point, sale of one more unit of product increases the company's profit by the am
    11·1 answer
  • The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $120,000. The machine would
    14·1 answer
  • On December 31, 2020, Blossom Inc. has a machine with a book value of $1,034,000. The original cost and related accumulated depr
    12·1 answer
  • True or False: The consequences of price ceilings are random, as the effects cannot be explained by the dynamics of the free mar
    15·1 answer
  • TRUE/FALSE. The technical and scientific characteristics of an industry may be more important than its structure in determining
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!