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pychu [463]
3 years ago
11

On january 1, applied technologies corporation (atc) issued $650,000 in bonds that mature in 10 years. the bonds have a stated i

nterest rate of 12 percent. when the bonds were issued, the market interest rate was 12 percent. the bonds pay interest once per year on december 31. determine the price at which the bonds were issued and the amount that atc received at issuance. complete the required journal entries to record the bond issuance and the first interest payment on december 31 assuming no interest has been accrued earlier in the year. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)
Business
1 answer:
nignag [31]3 years ago
8 0

Answer:

Since the bond's coupon rate is identical to the market rate, then they should have been sold at face value. Since we are not given any costs associated to the issuance, then I will assume it is $0.

January 1, bond issuance:

Dr Cash 650,000

    Cr Bonds payable 650,000

December 31, coupon payment:

Dr Interest expense - bonds 78,000

    Cr Cash 78,000

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They allege that officials have deprived inmates of their constitutional rights

8 0
3 years ago
The All-Star Basic Value Fund's portfolio is valued at $250 million. The fund has liabilities of $23 million, and the fund’s net
svetoff [14.1K]

$13.27 is the fund's number of shares outstanding

Solution:

Given,

The All-Star Basic Value Fund's portfolio is valued at $250 million

Liabilities of $23 million

Net asset value = 17,100,000

Now ,

To find , fund's number of shares outstanding :

NAV = ($250 million - $23 million)/17.1 million = $13.27

$13.27 is the fund's number of shares outstanding

8 0
3 years ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
Sergio039 [100]

Answer:

Option (A) is correct.

Explanation:

Given that,

Implicit costs per week = $200,000

Average explicit cost per banana = $0.25 per banana

Per week bananas sold = 1 million

Explicit cost = Average explicit cost per banana × No. of banana sold

                    = $0.25 × 1,000,000

                    = $250,000

Total revenue = No. of banana sold × Selling price of each banana

                        = 1,000,000 × $0.50

                        = $500,000

Accounting profit = Total revenue - Explicit cost

                             = $500,000 - $250,000

                             = $250,000

Economic profit:

= Total revenue - Explicit cost - Implicit costs

= $500,000 - $250,000 - $200,000

= $50,000

5 0
3 years ago
Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. Its div
Korolek [52]

Answer:

option 14.92%

Explanation:

Data provided in the question;

Expected annual dividend to be paid = $0.65

Expected growth rate = 9.50%

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Now,

Expected rate of return = \frac{\textup{Expected dividend}}{\textup{Stock price}}\times100\% + Growth rate

or

Expected rate of return = \frac{\$0.65}{\$12.00}\times100\% + 9.50%

or

Expected rate of return = ( 0.054167 × 100% ) + 9.50%

or

Expected rate of return = 5.4167% + 9.50%

or

Expected rate of return = 14.9167 ≈ 14.92%

Hence, the correct answer is option 14.92%

4 0
4 years ago
Which of the following statements best describes a chart of accounts?
krok68 [10]
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