Answer:
$1,073.60
Explanation:
bond's current price = PV of face value + PV of coupons
maturity = 10 years
face value = $1,000
coupon rate = 7% annual
market rate = 6%
PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39
PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21
market value at issue date = $558.39 + $515.21 = $1,073.60
since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.
Answer:
c. $180 in 2019
Explanation:
The company uses the accrual method of accounting. Under the method, revenues are reported on the income statement when they are earned, regardless of when the money is actually received or paid.
On July 1, 2017, the company sold a one-year membership and a two-year membership. In 2017, The Maroon & Orange Gym, Inc. has provided service for 6 months of each contracts.
Gross income of one-year membership in 2017 = $40 x 6 = $240
Gross income of one-year membership in 2017 = $30 x 6 = $180
Total income = $240 + $180 = $420
In 2018, the company continued to provide service for 6 months remaining of one-year membership and 12 months remaining of two-year membership.
Gross income of one-year membership in 2018 = $40 x 6 = $240
Gross income of one-year membership in 2018 = $30 x 12= $360
Total income = $240 + $360 = $600
In 2019, the company completed providing service for 6 months remaining of two-year membership.
Gross income in 2019 = $30 x 6= $180
Answer:
The answer is EV (Earned Value)
Explanation:
It is the value of the work actually performed, determining the earned value includes collecting data on the percent complete for each work package, then converting this percentage to a dollar amount by multiplying the TBC of the work package by the percent completed.
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Answer:
Price at issuance is $1,000 for both bonds.
Price of the 5 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77
PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47
Market price = $935.24
this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%
Price of the 10 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97
PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78
Market price = $876.75
this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%
Answer:
Explanation:
March 1
Cash 1700
Share Capital 1700
To record the issuance of shares
March 3
Equipment 1400
Cash 1400
To record the purchase of equipment on cash
March 5
Rent Expense 470
Cash 470
To record the rent expense
March 7
No entry neither cash nor serves are provided.
March 12
Purchase 117
Cash 117
To record the purchases
March 15
Cash 670
Income 670
To record the services Income.
March 19
Advance 570
Payable 570
To record the advance cash receipt for services not yet provided thus advance is our liability.
March 25
Payable 228 570/25*10
Income 228
To record the services income against advance given.
March 30
Utilities Expense 82
Cash 82
To record the monthly utilities expense
March 31
Dividend Pay 85
Cash 85
To record the payment of dividend.
2)
<u>Share Capital Account</u>
Opening = 0
Cash 1700
<u>Closing=1700</u> <u> </u>
<u>Cash Account</u>
Opening = 0
share capital 1700 Equipment 1400
Rent 470
Purchase 117
Income 670
Adv. Pay 570
Utilities 82
Dividend 85
<u>Closing balance- 786</u>
<u>Equipment</u>
Opening = 0
Cash 1400
<u>Closing-1400</u>
<u>Rent Expense</u>
Opening = 0
Cash 470
<u>Closing-470</u>
<u>Purchase Expense</u>
Opening = 0
Cash 117
<u>Closing-117</u>
<u>Income Account</u>
Opening = 0
Cash 670
Payable 228
<u>Closing- 898</u> <u> </u>
<u>Payable Account</u>
Opening = 0
Cash 570
Income 282
<u>Closing-342</u> <u> </u>
<u>Utilities Expense</u>
Opening = 0
Cash 82
<u>Closing-82</u>
<u>Dividend</u>
Opening = 0
Cash 85
<u>Closing-85</u>
3) Trail Balance
Head Of Account Debit Credir
Cash 786
Share Capital 1700
Equipment 1400
Rent Expense 470
Purchases 117
Income 898
Payable 342
Utilities 82
Dividend 85
Total 2940 2940