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horrorfan [7]
3 years ago
9

Presented below are two independent situations. a. George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1

, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. by. Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semi annually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020.
Business
2 answers:
ArbitrLikvidat [17]3 years ago
7 0

Answer:

Check the explanation

Explanation:

Bond cost 2000000

Bond discount 10%

Bond years 10

Bond yield 4%

Interest (Jan-June) 100000

Less: Premium Amortisation (4000) (2000000*0.04)/10 *6/12

Interest expense 96000

=========================

=========================

Bond cost 562500

Bond discount 9%

Bond years 10

Bond yield 10%

Interest (June 30-Oct 30) - ((1.10)^4/12) - 1=3.228%

Interest expense= 562500*3.228% =18157.5

andreev551 [17]3 years ago
6 0

Answer:

(a) Bond cost 2000000

Bond discount 10%

Bond years 10

Bond yield 4%

Interest (Jan-June) 100000

Less: Premium Amortisation (4000) (2000000*0.04)/10 *6/12

Interest expense 96000

(b) Bond cost 562500

Bond discount 9%

Bond years 10

Bond yield 10%

Interest (June 30-Oct 30) - ((1.10)^4/12) - 1=3.228%

Interest expense= 562500*3.228% =18157.5

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Answer:

Explanation:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\  

FV  $200,000.00  

time 5 years

rate 0.1% = 10/100 = 0.10

200000 \div \frac{(1+0.1)^{5} -1}{0.1} = C\\  

C  $ 32,759.496  

The installment will generate 10% interest overtime and provide with a 200,000 dollar count after six years

7 0
3 years ago
A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some o
PSYCHO15rus [73]

Answer:

The correct answer is stockkeeping unit.

Explanation:

In the field of inventory management, an inventory maintenance unit or SKU refers to a specific item stored in a certain place. The SKU is considered the most disaggregated level when talking about inventory. It is assumed that the units stored in the same SKU are indistinguishable. The introduction of the SKU concept simplifies most inventory control operations. SKUs are sometimes used to designate intangible items, as guarantees; however, in this article we will focus on SKUs that designate tangible items.

8 0
3 years ago
Which of the following is not a type of trademark? fanciful arbitrary simple suggestive
Phantasy [73]

Considering the available options, the choice that is not a type of trademark is "<u>Simple</u>."

<h3>What is a Trademark?</h3>

Trademark is the term used to describe the word, phrase, design or symbol, or combination thereof.

Generally, the purpose of a Trademark is to create the identity for the source of the commodities such that these commodities can be easily differentiated from similar commodities.

<h3>Different types of Trademarks</h3>

There are four major categories of Trademarks which include the following:

  • Coined or Fanciful trademark
  • Arbitrary trademark
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Hence, in this case, it is concluded that the correct answer is "<u>Simple</u>."

Learn more about Trademarks here: brainly.com/question/11957410

5 0
2 years ago
In the text, Curves is an example of which path? a. Looking across alternative industries b. Looking across strategic groups wit
Elena L [17]

Answer:

The correct option is D) Looking across complementary offerings

Explanation:

There are about 6 well-known paths to achieving a <em>Blue Ocean Strategy.</em>

Generally, the Blue Ocean Strategy (BOS) seeks to avoid locking horns with the competition by identifying niche areas that are critical to the attainment of a competition-free space. According to the BOS took kit, there are 6 paths to achieving a blue ocean strategy.

One of them is called looking across complementary offerings.

Another term for the Curve is Value Ramp. Value Ramp simply refers to a methodology for evaluating one's service/product offerings. It consists of a graph that plots a curve sloping upwards from left to right, showing the relationship between price and the value or perception of value being delivered by the business.

The principle offered here stated that the higher the perception of one's brand, the more one should be able to charge for their services.

Value is thought to increase as the business delivers more and more personalized services in a relationship-oriented fashion rather than generic products and services which are readily available off the shelf in most cases.

Cheers

7 0
3 years ago
If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would ther
Xelga [282]

Answer:

C.105,500 units

Explanation:

Equivalent unit of production is the quantity of work done in the manufacturing / production department. It also includes the completed percentage portion of the units in work in process.

Units complete and transferred = Beginning units + Additions - uncompleted units = 10,000 units + 100,0000 units - 15,000 units = 95,000 units

Equivalent Units = Units complete and transferred + ( Closing units x percentage completion )

Equivalent Units = 95,000 + ( 15,000 x 70% )

Equivalent Units = 95,000 + 10,500

Equivalent Units = 105,500

4 0
3 years ago
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