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Varvara68 [4.7K]

4 years ago

12

The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company

with a BBB- rating. Question 7 options: True Fals

1 answer:

Alex_Xolod [135]4 years ago

5 0

Answer:

The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company with a BBB- rating.

True

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Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful

alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0

4 years ago

Scott tried to file a police report after being victimized by an identity thief. However, the police department was reluctant to

saul85 [17]

Answer:

Explanation:

if the question is select multiple answers then both A and C. if it is just one answer then A.

7 0

4 years ago

Read 2 more answers

Miller's office building with an adjusted basis of $625,000 and a fair market value of $885,000 is condemned on December 30, 201

Amiraneli [1.4K]

Answer:

1a. Recognized Gain $20,000

1b. Basis $625,000

Explanation:

1a. Calculation for Miller's recognized gain using this formula

Miller's recognized gain =Condemnation award-Costs of building a new office

Let plug in the formula

Miller's recognized gain=$850,000-$830,000

Miller's recognized gain=$20,000

Therefore Miller's recognized gain will be $20,000

1b.Miller's basis

Based on the information given we were told that Miller's office building had an adjusted basis of the amount of $625,000 which simply means that Miller's BASIS for the new office BUILDING will be the amount of $625,000

Therefore the Basis is $625,000

4 0

3 years ago

Nolan Company's cash account shows a $22,064 debit balance and its bank statement shows $22,531 on deposit at the close of busin

Bezzdna [24]

Answer:

Nolan Company

Bank Reconciliation

June 30

$

Balance per cash book 22,064

Less: Bank Service charges ( 24)

Add: Error in recording payment ( $ 59- $ 50) 9

Add: Interest earned <u> 27</u>

Adjusted balance per cash book <u> 22,076</u>

Balance per bank statement 22,531

Less: Outstanding checks ( 2,655)

Add; Deposits in Transit <u> 2,200</u>

Adjusted balance per bank statement <u>22,076</u>

Explanation:

The bank service charges and the interest earned appear on the bank statement and has to be adjusted in the cash book balance. The errors found in recording the payment at $ 59 instead of $ 50 results in an overpayment and the correction needs to be added to the cash book balance

the outstanding checks has not yet been cleared by the bank so there is a reduction on the bank statement balance. The deposits in transit has not been received by the bank so needs to be adjusted as an addition on the bank statement balance.

3 0

3 years ago

An investor deposits $35,000 into an IRA for her retirement in 25 years.The account pays 3.5% interest compounded continuously.

sergeinik [125]

Answer:

The value of her account after 25 years, if she stays true to the plan is:

= $152,823.31.

Explanation:

a) Data and Calculations:

Initial deposits = $35,000

Period of investment = 25 years

Interest rate per year = 3.5% compounded continuously

Annual deposit into the same account = $1,800

Period of investment = 25 at 3.5% interest rate

Total value of her IRA account after 25 years:

Future value of $35,000 = $82,713.57

Future value of $1,800 yearly = 70,109.74

Total future value = $152,823.31

From an online financial calculator:

N (# of periods) 25

I/Y (Interest per year) 3.5

PV (Present Value) 35000

PMT (Periodic Payment) 0

Results

FV = $82,713.57

Total Interest $47,713.57

N (# of periods) 25

I/Y (Interest per year) 3.5

PV (Present Value) 0

PMT (Periodic Payment) 1800

Results

FV = $70,109.74

Sum of all periodic payments $45,000.00

Total Interest $25,109.74

7 0

3 years ago