The recording of adjusting entries is supported by the.

Routine, day-to-day business processes and interaction with customers occur at the ________ level of a firm.

Setler79 [48]

Answer:

Operational level

Explanation:

The operational level is the bottom level in an organization and it is at this level that <u>daily business operations and activities, that connect the organization directly with customers, take place.</u>

Examples of such activities include; manufacturing, marketing and selling.

8 0

2 years ago

Please answer asap NO LINK PLS

Fynjy0 [20]

Thanks you for helping me with the link

8 0

2 years ago

Bond j has a coupon rate of 5 percent and bond k has a coupon rate of 11 percent. both bonds have 13 years to maturity, make sem

aleksley [76]

To find the change in the price of the bonds, first need to find the price of individual Bond.

Bond Price is directly related to the change in the YTM of the bond. If the YTM rises by 2%, the price of the bond will fall.

Bond J :

(WHEN YTM IS 8%)

Coupon Rate: 5%

Coupon Amount (PMT): $1,000 * 5% = $50/2 = $25 (Semi annual coupon amounts)

Number of years (NPER) = 13*2 = 26

YTM (rate) = 8%/2 = 4%

Face Value: $1000

Price (PV0) : ?

To find the price of the bond, can either use excel or with formula.

When input the below formula in excel,

PV =pv(rate,nper,pmt,fv,type)

P0 =pv(4%,26,-25,-1000)

When input the formula in excel, we get PV as $760.26

(WHEN YTM RISES BY 2%, NEW YTM IS 10%)

Coupon Amount (PMT): $25 (Semi annual coupon amounts)

Number of years (NPER) = 26

YTM (rate) = 10%/2 = 5%

Face Value: $1000

Price (PV1) : ?

To find the price of the bond, can either use excel or with formula.

When input the below formula in excel,

PV =pv(rate,nper,pmt,fv,type)

P1 =pv(5%,26,-25,-1000)

When input the formula in excel, we get PV as $640.62

CHANGE IN THE BOND PRICE OF BOND J DUE TO THE CHANGE IN THE YTM

%change = (P1 – P0)/P0

%change = ($640.62 - $760.26)/$760.26

%change = -18.68%

Therefore, with the increase in 2% YTM of BOND J, the price falls by 18.68%

Bond K :

(WHEN YTM IS 8%)

Coupon Rate: 11%

Coupon Amount (PMT): $1,000 * 11% = $110/2 = $55 (Semi annual coupon amounts)

Number of years (NPER) = 13*2 = 26

YTM (rate) = 8%/2 = 4%

Face Value: $1000

Price (PV0) : ?

To find the price of the bond, can either use excel or with formula.

When input the below formula in excel,

PV =pv(rate,nper,pmt,fv,type)

P0 =pv(4%,26,-55,-1000)

When input the formula in excel, we get PV as $1,239.74

(WHEN YTM RISES BY 2%, NEW YTM IS 10%)

Coupon Amount (PMT): $55 (Semi annual coupon amounts)

Number of years (NPER) = 26

YTM (rate) = 10%/2 = 5%

Face Value: $1000

Price (PV1) : ?

To find the price of the bond, can either use excel or with formula.

When input the below formula in excel,

PV =pv(rate,nper,pmt,fv,type)

P1 =pv(5%,26,-55,-1000)

When input the formula in excel, we get PV as $1,071.88

CHANGE IN THE BOND PRICE OF BOND K DUE TO THE CHANGE IN THE YTM

%change = (P1 – P0)/P0

%change = ($1071.88 - $1239.74)/$1239.74

%change = -13.54%

Therefore, with the increase in 2% YTM of BOND k, the price falls by 13.54%

SIMILALRY IF THE BOND PRICES FALLS BY 2%, the YTM WILL BE 6%/2 = 3% **(REFER THE IMAGE ATTACHED)

5 0

2 years ago

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.

Solnce55 [7]

The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900

Explanation:

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900.
Unearned extended warranty revenue is given to be as an unearned revenues in accrued liabilities in the balance sheets.
Revenue which comes from separately priced, self-insured service contracts is reffered at the point of sale.
Unearned revenue is a money which is received from a customer for work that has not been performed still.

7 0

2 years ago

In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1,700 per month, start

Ksju [112]

Answer:

$268,696.93

Explanation:

Where an equal amount of money is saved periodically to earn interest at a particular rate of interest to accumulate a target amount in the future , it is called a sinking fund. The purpose could be for retirement, loan repayment or asset acquisition

The sum accumulated (deposit plus interest earned) at the end of the final period is known as the Future Value (FV) of the sinking fund.

The FV is determined as follows:

FV = A × ((1+r/m)^(n× m) - 1)/(r/m))

where FV- future value, A- annual cash flow, r-rate of return, n- number of years, m- number of compounding periods in a year.

<em>so we can apply this to our question</em>

a = 1700, r - 8%= 0.08, m=4, n- 18

FV = 1,700 ×( (1+0.08/4)^(18 × 4) - 1)/(0.08/4))

= 1700 × 158.0570

=$268,696.93

The account will have $268,696.93 at he end of he 18 years

5 0

2 years ago