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Pavel [41]
3 years ago
8

A firm has an issue of $1,000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annual

ly and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8 percent, the firm's bond will sell for ________ today.
Business
1 answer:
Mamont248 [21]3 years ago
4 0

Answer:

c

Explanation:

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A budget is used to do which of the following
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Read 2 more answers
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc
kvasek [131]

Answer:

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

Dr Investment in Nursery supplies $7 million

Cr Investment Revenue $7 million

Dr Cash $9 million

Cr Investment in Nursery supplies $9 million

No Entry

Explanation:

Preparation of the appropriate journal entries from the purchase through the end of the year.

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

(To record purchase of 25% shares for $66 million)

Dr Investment in Nursery supplies ($28 million x 25%) $7 million

Cr Investment Revenue $7 million

(To record investor share of investee's net income)

Dr Cash (18 million shares x 25% share x $2 per share) $9 million

Cr Investment in Nursery supplies $9 million

(To record receipt of dividend)

No Entry

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