1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Umnica [9.8K]
3 years ago
12

On May 1, 20X2, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 20X12. The bonds were issued

to yield 10%, resulting in bond premium of $62,000. Bolt uses the effective interest method of amortizing bond premium. Interest is payable semiannually on November 1 and May 1. In its October 31, 20X2, balance sheet, what amount should Bolt report as unamortized bond premium?
a. 62,000
b. 60,100
c. 58,900
d. 58,590
Business
1 answer:
TiliK225 [7]3 years ago
4 0

Answer:

B) 60,100

Explanation:

Since months have passed between the bond issuance and October 31. The amortization of the premium received depends on the amount of interest recognized. When the effective interest method is used, interest expense is based on the yield rate and the beginning book value.

interest expense = ($1,000,000 + $62,000) x 10% x 6/12 = $53,100

interest payable = $1,000,000 x 11% x 6/12 = $55,000

the difference (bond premium) = $55,000 - $53,100 = $1,900

unamortized bond premium = $62,000 - $1,900 = $60,100

You might be interested in
Clarence used to work as a doctor in a federal government hospital. After retiring, he started a private clinic to continue prac
Masteriza [31]

Answer:

self-actualization

Explanation:

The answer is deeply related to "Maslows Hierarchy of Needs."

Abraham Harold Maslow is a popular American psychologist who introduced a motivational theory consisting of five stages in relation to the<em> deficiency needs and growth needs of humans.</em>

Everything starts with the deficiency needs.<u> It is very important to satisfy this need in order to engage into the growth needs.</u> For example, a boy is very thirsty. If that need will not be met, the boy will continuously crave for water. On the contrary, if this is met immediately, the boy will aim to grow as a person. This is what you call the growth needs.

This needs are presented in a pyramid.

From top to bottom:

1. Self-actualization

2. Self-esteem Needs

3. Love or Belongingness Needs

4. Safety Needs

5. Physiological Needs

It is ideal for a person to progress from Physiological Needs to Self-actualization, but it doesn't mean every stage is always met. Sometimes, fluctuations occur depending on the situation.

Regarding Clarence's case above. It was stated that he already worked as a doctor in a federal government. This means that he has already satisfied his self-esteem needs and the other needs below. Becoming a doctor is a prestige and a feeling of accomplishment. This can be found on the <u>Self-Esteem Needs </u>stage. In addition to this, <em>Clarence already reached his full potential and is seeking for personal growth and independence. </em>This is backed by the statement above that he opened a private clinic to continue his practice. This means he is already on the self-actualization stage of the hierarchy. 

6 0
2 years ago
Suppose the price of a gallon of ice cream rises from $4 to $5, and the price of a can of coffee rises from $2 to $2.50. If the
ExtremeBDS [4]

Answer:

a. less ice cream, less coffee

Explanation:

The percentage change in CPI is given by:

\%CPI = \frac{177-150}{150}=0.18

The percentage change in the prices of coffee and ice cream, respectively, are:

\%C = \frac{5-4}{4}=0.25\\\%I = \frac{2.50-2.00}{2.00}=0.25

Both coffee and ice cream had an increase in price above the CPI increase, which means that both goods are being sold above the equilibrium price and thus their demand is likely to fall.

People likely will buy less ice cream, less coffee

4 0
3 years ago
Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supp
bekas [8.4K]

Answer:

Manson will incur a loss of $10,300 by buying the part.

Explanation:

Purchases = 10,300 * $6 = $61,800

Variable cost = 10,300 * $5 = $51,500

Fixed cost = 10,300 * $3 = $30,900

Analysis:

<u>Details               Make ($)           Buy ($)         Net ($) </u>

Purchase                  0                  61,800          61,800

Variable              51,500                   0              51,500

Fixed                  30,900              30,900        <u>     0    </u>

Loss                                                                  <u> 10,300   </u>

Therefore, Manson will incur a loss of $10,300 by buying the part.

6 0
3 years ago
Two guys walk into a bar; the third one ducks. If these three men acted independently, and the probability is 0.7 that a person
allsm [11]

Answer:

0.063

Explanation:

Given

Probability of a person to not enter into a bar or ducking   is 0.7

Probability of a person to  enter into a bar  

1 - (Probability of a person to not enter into a bar or ducking)

Substituting the given value, we get

Probability of a person to enter into a bar  

= 1 - 0.7 \\= 0.3

Total three men attempts to enter into the bar and their course of action is independent of each others

Thus, probability of observing the first two walking into the bar and the third ducking will be equal to the product of individual probabilities

= 0.7 * 0.3 * 0.3\\= 0.063

7 0
3 years ago
Sheffield Corp. assigned $1601000 of accounts receivable to Pharoah Company as security for a loan of $1344000. Pharoah charged
Tpy6a [65]

Answer:

$1,317,120

Explanation:

Cash received by Sheffield Corporation at the time of assignment = Amount borrowed - Commission paid

= $1,344,000 - ($1,344,000 * 2%)

= $1,344,000 - $26,880

= $1,317,120

So, the amount of cash Sheffield received from Pharoah at the time of the assignment was $1,317,120

7 0
3 years ago
Other questions:
  • The following data are given for Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard
    12·1 answer
  • At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs. If vol
    8·1 answer
  • SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates
    10·2 answers
  • Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in bo
    11·1 answer
  • An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold
    6·1 answer
  • Randi Wood wants to become the best manager in the firm. She takes every available opportunity to learn new skills and improve h
    9·1 answer
  • On June 30, 2018, Mabry Corporation issued $15 million of its 8% bonds for $13.8 million. The bonds were priced to yield 10%. Th
    6·1 answer
  • Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
    5·1 answer
  • Exercise 8-7 At December 31, 2018, Concord Corporation Company had a credit balance of $18,800 in Allowance for Doubtful Account
    11·1 answer
  • What is the correct definition of harassment?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!