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swat32
3 years ago
9

On January 1, 2018, Album Co. issued $200,000 of ten-year bonds. Interest is payable semi-annually on June 30 and December 31. T

he bonds were sold for $185,953. A journal entry was prepared on June 30, the first interest payment date, to record interest expense of $13,016 and cash interest paid of $12,000. What is the annual stated interest rate for the bonds?
Business
1 answer:
Mrac [35]3 years ago
6 0

Answer:

12%

Explanation:

Album Co. paid $12,000 for interest, and that is the stated interest of the bonds.

Stated interest = $12,000 / $200,000 = 6% semiannually, therefore the annual stated interest is 6% x 2 = 12%

The stated rate is applied to the face value of the bonds, regardless of their selling or trading price.

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In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most r
Burka [1]

Answer:

Ranking projects from least risky to most risky:

1. Repair to old machinery.

2. Addition to normal product line.

3. Completely new market in United States.

4. Completely new market in South America.

Explanation:

As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas.  This implies that increasing uncertainty induces more risk.

6 0
2 years ago
If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is ______________.
Jobisdone [24]

Answer:

The amount of cash received from the sale is $1,027,500

Explanation:

In this scenario we first have to know the number of bonds issued and then multiply it by the bond price which is given to us in the question.

The bonds have a total face value of 1,000,000 and one bond is issued at 102.75 which means that the face value of a single bond is 100.

Now in order to find the number of bonds issued we will divide the total face value by the face value of a single bond.

1,000,000/100=10,000.

10,000 bonds were issued at $ 102.75 now in order to calculate the total cash received we will multiply the number of bonds with the issue price.

10,000*102.75=1,027,500

4 0
3 years ago
Help plssssssssssssss
kupik [55]
4) paring 5) fish 6) utility 7) filet 8) chef 9) turning 10) bread

(might be wrong)
5 0
2 years ago
On December 31, 2021, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, ex
ivanzaharov [21]

Answer:

$20,000

Explanation:

Calculation to determine by what amount will Perry's earnings increase due to this lease

Using this formula

Selling price=Fair value-Cost

Let plug in the formula

Selling price=$125,000-$105,000

Selling price=$20,000

Therefore The amount that Perry's earnings will increase due to this lease is $20,000

3 0
3 years ago
. One of the goals you have set for your company is "to expand our product line." This statement is A. a slow-growth option. B.
mr Goodwill [35]
The statement in above describes the choice letter B, which can be considered as the correct answer. It is considered to be not clear and not measurable because the statement does not provide the exact or clear information. It does not state in which or what way will the expanding of the product line be.
3 0
3 years ago
Read 2 more answers
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