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tiny-mole [99]
3 years ago
15

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. T

he proceeds from the bonds are $14,703,109.
Using effective-interest amortization, how much interest expense will be recognized in 2012?
a. $585,000b. $1,170,000c. $1,176,374d. $1,176,249
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

Interest Expense for 2017 is $1,176,373

Explanation:

Interese Expense to be recognized in 2017 is $1,176,373

Interest Expense for Jan-Jun = $14,703,108 * 8%/2 = $588,124

Amortization of Discount= ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)

= $588,124 - $585,000 = $3,124

Carry Amount of Bond on June 30 = $14,703,108 + ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)

= $14,703,108 + $588,124 - $585,000 = $14,706,232

Interest Expense for Jun-Dec= [$14,703,108 + ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)] *8% /2

= ($14,703,108 + $588,124 - $585,000) *8% /2

=  $14,706,232  *8% /2 = $588,249

Interest Expense for 2017 = $588,124 + $588,249 = $1,176,373

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In 2006, selected new automobiles had an average cost of $16,000. The average cost of those same automobiles is now $28,000. Wha
larisa [96]

Answer:

Explanation:

%increase is given as = increase/ original prices ×100

Increase = new cost - original cost

The original average cost is $16000,

And the new average cost is $28,000

Then,

Increase = 28000-16000

Increase =$12,000

Then,

%increase=increase/original cost ×100

%increase = 12000/16000 ×100

%increase=75%

The rate of increase of the automobile cost is 75%

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Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.
Nat2105 [25]
Increase and increase
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Carl has a checking account. He'd like to know right away when his balance gets lower than $50. What should Carl do?
enyata [817]
He should set up an alert.
8 0
3 years ago
Read 2 more answers
The trial balance for Swifty Corporation appears as follows:
Shkiper50 [21]

Answer:

Explanation:

The adjusting entry for supplies is shown below:

Supplies expense A/c Dr    $115

    To supplies A/c                              $115

(Being adjusted entry recorded)

The trial balance show a supplies balance of $148 and the supplies on hand were $33, so the adjusted supply balance would be equal to

=  Supplies balance - supplies on hand

= $148 - $33

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8 0
3 years ago
I need to write a balance sheet but I am having trouble with the format. can anyone please help?
vichka [17]
Answer & Explanation:
Most balance sheets are arranged according to this equation:

Assets = Liabilities + Shareholders’ Equity

The equation above includes three broad buckets, or categories, of value which must be accounted for:

1. Assets

An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.

Assets can be further broken down into current assets and noncurrent assets.

- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.

2. Liabilities

A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.

As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.

- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.

3. Shareholders’ Equity

Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.

Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:

Shareholders’ Equity = Assets - Liabilities

— Courtesy of Harvard Business School

I hope this helped! :)
6 0
3 years ago
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