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
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.

You might be interested in
Frederick is a student at Central Fictional State University (CFSU), and he has a great idea for a new business invention. Frede
Delvig [45]

Answer: He should should File a suit.

Explanation:

He should should File a suit.

The new innovation was Frederick's brain child, I believe God gave him this innovative Idea he could change people's lives professionally and even personally. Frederick should only sue the Professors for the use of his innovative idea and the Patents for this innovation to be transferred back to the rightful owner of innovation (Frederick) and not to sue them for everything they have the aim here is to teach/show professors that stealing is wrong and  not to punish.

We should not let evil doers prevail, suing Professors will teach them a lesson that stealing a person's idea is wrong and they should not do it again, if Frederick doesnot sue the professors would probably do it to another student. Frederick's law suit will not only help him but it will actually save a lot of students coming after him which is what Christianity is teach us to do good for other people.

6 0
3 years ago
Assume real per capita GDP in West Swimsuit is $10,000 while in East Quippanova it is $2,500. The annual growth rate in West Swi
Alex787 [66]

Answer:

correct option is B. about 30 years

Explanation:

given data

real per capita GDP west = $10,000

annual growth rate = 2.33%

real per capita GDP east = $2,500

annual growth rate = 7%

to find out

How many years will it take for East  to catch up GDP of West

solution

we know here that future value is equal to real GDP of west after time  will be

future value = real per capita GDP west × rate^{t}

future value = 10000 × (1+0.0233)^{t} .....1

and

future value = real per capita GDP east × rate^{t}

future value = 2500 × (1+0.07)^{t} .....2

compare equation 1 and 2

10000 × (1+0.0233)^{t}  = 2500 × (1+0.07)^{t}

4 (1.0233)^{t}  =  (1.07)^{t}

t = about 30 years

so correct option is B. about 30 years

5 0
3 years ago
On April 1, 2015, the City of Southern Ponds issued $3,500,000 in 4% general obligation, tax supported bonds at 101 for the purp
LUCKY_DIMON [66]

Answer:

B) $ 70,000.

Explanation:

Debt service expense

Debt service expense is the interest expense incurred to avail the debt services from another entity.

Debt service expense can be calculated using the following formula

Debt service expense = Face value of Bonds x Interest rate x Semiannual fraction

Where

Face value of bonds = $3,500,000

Interest rate  = 4%

Semiannual fraction = 6 / 12 = 1/ 2

placing values in the formula

Debt service expense = $3,500,000 x 4% x 1/2

Debt service expense = $70,000

3 0
2 years ago
When you visit the executive assistant to request important changes to a spreadsheet, he is hard at work, e-mailing clients. The
valkas [14]

Answer:

he values your time

Explanation:

In this specific scenario, the executive assistant is expressing nonverbally that he values your time. This is expressed by him stopping what he was doing in order to pay attention to what you have to say to him when you enter the room. Since the work that he is doing (e-mailing clients) is incredibly important, the simple act of him stopping shows that your time is more important to him.

6 0
3 years ago
Sam, a third-grader, really likes to look for interesting bugs with other people during recess. Each of Sam's friends offers to
andre [41]

Answer: 1. No.

2. Yes.

Explanation:

Price Discrimination is a pricing strategy where suppliers/producers or sellers sell a good to different people at different prices depending largely on their preference and/or capacity to pay for the commodity i.e, if you want it more, you are charged more.

1. Johnny did not like to play Hopscotch, so offering Suzie one day of Hopscotch for two days of bug hunting is fair and no price discrimination occured as he did not offer these terms to someone else who's game he did not like.

2. Sam knew that Johnny really liked playing Slaps so he leveraged on that and offered him more expensive terms so to speak than he did to Bill even though he liked playing the both games equally. This means that he charged Johnny more than Bill simply because Johnny liked and preferred his game alot which is Price discrimination.

4 0
3 years ago
Other questions:
  • Northern Company has bonds with an amortized cost of $600,000. At the end of the first reporting period, the bonds had a fair va
    12·1 answer
  • An advantage of the decentralized organization is that
    10·1 answer
  • Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts th
    12·1 answer
  • What is the difference between simple and compound interest rates
    5·1 answer
  • Sally was an all-state soccer player during her junior and senior years in high school. She accepted an athletic scholarship fro
    8·1 answer
  • Describe the advantages and disadvantages of using a certificate of deposit (cd) to save money.
    15·1 answer
  • The management process is complex. The management functions include
    13·1 answer
  • Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 30%. The T-bill rate
    5·1 answer
  • Producer c has written 25 policies over the last 12 months, 4 of which have been issued to his employees in a side business, acc
    11·1 answer
  • josephine is the manager of human resources in a union environment. what specific knowledge does she need in order to do her job
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!