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dimulka [17.4K]
2 years ago
10

The Principal of a bond is:

Business
1 answer:
tekilochka [14]2 years ago
6 0
For bonds,principal generally refers to the bonds face value or the par value.
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Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:
Fudgin [204]

Answer:

The answer is attached for ready reference

Explanation:

Please note no effect for depreciation is taken as it is non cash item.

The may ending balance is having a surplus of $103,300              

Download xlsx
8 0
3 years ago
On January 2, 20X1, Schneider Company issues $100,000 of 6% bonds. Interest of $3,000 is payable semi-annually on June 30 and De
____ [38]

Answer:

Effective interest recognized on June 30, 20X1, will be equal to $3,354

Explanation:

Data provided from the question,

Amount of bond issued on January 2, 20X1 = $100,000 of 6% bonds

Interest = $3000

Payable semi-annually on June 30 and December 31

Number of years to mature = 5 years

The bond issued for $95,842 with an effective interest rate of 7%

Therefore, the Effective interest recognized on June 30, 20X1 =

bond issued × effective interest rate × semiannually(1/2)

= $95,842 x 0.07 x 0.5

= $3,354

3 0
3 years ago
On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the
Illusion [34]

Answer:

The journal entry that is to be recorded on May 1 is shown below:

Explanation:

May 1

The first entry to be posted:

Accounts Receivable A/c...................Dr     $5,800

       Sales A/c............................................Cr      $5,800

As the company made a sale, so the sale is credited and it made against the accounts receivable. Therefore, accounts receivable account is credited.

The second entry to be posted is as:

Costs of goods sold A/c....................Dr   $4,000

       Merchandise inventory A/c...................Cr   $4,000

The cost of the goods sold amounts to $4,000. So, the account of COGS is debited and it is against the inventory. Therefore, the merchandise inventory is credited.

8 0
3 years ago
If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarte
max2010maxim [7]
 <span>It is very simple. The more often it is compounded the better. So daily is the best, next is weekly, monthly etc. The greater the number of compounding periods, the better it is for your bottom line. 
With a savings account you are lending the bank money but with a mortgage they lend you money so conversely, you want as few compounding periods as possible. 
It works this way because at each break point to which they compound interest (ie.say monthly) they capitalize (add the interest earned to that point) into the investment and you earn interest on your interest for the next period as well as on the principal you started with (next month in this scenario) So the more often they include the interest earned into the calculation (compound periods) the greater the impact on growth. hope it helps
</span>
4 0
2 years ago
2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan
Alona [7]

Answer:

3 years

Explanation:

The computation of the time period is shown below

Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05

$2,000 = $14,688.4 × [1-(1.05)^-n]

1-(1.05)^-n = ($2000 ÷ $14,688.4)

(1.05)^-n = 1 - ($2000 ÷ $14,688.4)

( 1 ÷ 1.05)^n = 0.86383813

Now take the log to the both sides

n × log(1 ÷ 1.05) = log0.86383813

n = log0.86383813 ÷ log (1 ÷ 1.05)

= 3 years

6 0
3 years ago
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