Answer:
Explanation:
Interest expense refers to charges paid for borrowing money. It is the money that a lender charges borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.
Given that:
Moonbooks received $79,380 = principal amount of debt (P)
The interest rate (r) = 8% annually = 0.08.
Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350
For the second year i.e 2019 The principal amount of debt = $79380 + $6360 = $85730
Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858
Answer:
$1,305,600
Explanation:
Date of acquisition = Jan, 1 2016
Cost of purchase = $1,904,000
Initial useful life - 15 years
Initial amortization - 1904000/14
= $126,933
Date of review of amortization policy -2019
Accumulated amortization before 2019 -126,933.33*3=380800
Remaining useful years at December 2019 7
Amortization in 2019 =1904000-380800/7 =217,600
Carrying value at December 2019 = 1904000 - (380800 +217600) =1305600 Please note that change in amortization policy can only be applied progressively and not retrospectively
Answer:
b. $16,004.17
Explanation:
The bond pays annual interest of 7% over the 3 years. The annuity factor at 7% for 3 years is 2.6243. The amount of bond is divided by annuity factor to calculate the annual payment of bond. The payment includes bond principal repayment and interest payment. The first payment on July 31 will be for $16,004.17.
Based on the correlational analysis of X and Y that is given, we can infer that there is a linear relationship between X and Y.
<h3>What does the correlation analysis show?</h3>
The Pearson correlation coefficient shows if there is a linear relationship between given variables.
In the given table, the Pearson Correlation coefficient is not 0 for either variable which means that a linear relationship does in fact exist between the variables.
Find out more on the Pearson correlation coefficient at brainly.com/question/24084533.
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