1) Which of these is TRUE about the United States Constitution?

ABC Enterprises issues $400,000 of bonds paying a stated interest rate of 7%. The bonds are due in 10 years, with interest payab

Ainat [17]

Answer:

$305,772.29

The bond was issued at discount

Explanation:

The pv value approach in excel comes handy in determining the price of teh bond.

The formula is stated below:

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of other bonds of similar risk and maturity at 11%

nper is the number of times that the bond would pay coupon interest to the bondholders ,since the bond is an annual coupon paying bond,it would pay coupon for 10 years

pmt is dollar value of the coupon payable by the bond annually which is 7%*$400,000=$28,000

fv is the face value of the bond at $400,000

=-pv(11%,10,28000,400000)=$305,772.29

Since the bond was be issued at a price lower than its face value,hence it was issued at a discount

Alternatively

Present value of interest payment = 28000 * 5.8892 = 164,898

Present value of Bond Principal = 400000 * 0.3522 = 140,874.

Total present values 305,772

4 0

3 years ago

Read 2 more answers

Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio ana

svetlana [45]

Answer:

The correct answer is inject cash into it.

Explanation:

Every day, central banks lend money to private banks through auctions. The extraordinary thing about these new liquidity injections starring the European Central Bank or the US Federal Reserve is not so much the operation itself, as the situation in which they occur.

In this case, problems arise when, due to distrust, banks do not lend money to each other, operations that are common when the system is working properly.

With extraordinary placements, the central entities replace that lack of funds that private banks have not been able to obtain from their partners and, at the same time, at a cheaper price - at a lower interest rate.

6 0

3 years ago

Golddigger Services, Inc. provides services to clients. On May 1, a client prepaid Golddigger Services $60,000 for 6-months serv

slavikrds [6]

Answer:

C) Credit to Unearned Management Fees for $62,000.

Explanation:

* There is an Inconsistency with the amount of fee mentioned in Question and In options $60,000 and 62,000 respectively.

The Service fee is received in advance and the service is not been performed. You can record the revenue when you perform the service against the amount received. So, amount 62,000 will be the Unearned Management fee and it will be a liability and the Journal transaction for this event will be as follows:

Dr. Cash $62,000

Cr. Unearned Management Fees $62,000

So the correct option is C) Credit to Unearned Management Fees for $62,000.

8 0

3 years ago

McGuire Company acquired 100 percent of the voting common shares of Able Corporation by issuing bonds with a par value and fair

-Dominant- [34]

Answer: $650,000

Explanation:

Given that,

Fair and par value of issued bonds = $150,000

Prior acquisition, McGuire reported

Total assets = $500,000

Liabilities = $280,000

Stockholders’ equity = $220,000

At that date, Able reported

Total assets = $400,000

Liabilities = $250,000

Stockholders’ equity = $150,000

Account payable to McGuire = $20,000

Total assets reported by McGuire after acquisition:

= Total assets + Fair value of investment

= $500,000 + $150,000

= $650,000

4 0

3 years ago

The production budget shows expected unit sales of 40000. Beginning finished goods units are 3800. Required production units are

katrin2010 [14]

Answer:

desired ending inventory= 5,400 units

Explanation:

Giving the following information:

Sales= 40,000 units

Beginning finished goods= 3,800 units

Production= 41,600 units

<u>To calculate the desired ending inventory, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

41,600= 40,000 + desired ending inventory - 3,800

41,600 + 3,800 - 40,000= desired ending inventory

desired ending inventory= 5,400 units

8 0

3 years ago