Answer:
10%
Explanation:
Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.
10% yearly interest rate = 5% semiannual interest rate
we must determine the PV of the 20 coupons paid and the face value at maturity.
to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80
the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89
the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.
Answer:
The amount of Bad Debt Expense reported in 2019 was $16,100.
Explanation:
Our concern is mainly on the allowance for doubtful accounts. Based on the facts given in the question, the opening balance of the allowance account was $79,900 credit balance, while the closing balance was $96,000 credit. Since there were no write-offs or recoveries during 2019, the bad debt expense is simply the difference between the closing balance and the opening balance i.e, $96,000 - $79,900 = $16,100.
The journal entries will be:
Debit Bad debt expense $16,100
Credit Allowance for doubtful account $16,100
<em>(To record the bad debt expense for 2019) </em>
Answer:
$275,000
Explanation:
The computation of the value that should the land be recorded is shown below:
= Value at which rits accepted the counteroffer of the seller
= $275,000
Hence, the alue that should the land be recorded is $275,000
Basically it records the cost value as per the cost concept
The same should be considered
Answer:
C. $2
Explanation:
The marginal cost is the cost for producing an additional unit of the product. According to this and as the statement says that with the additional worker the output rises to 3,750, teh first thing is to find the number of additional units that were produced:
3,750-3500= 250
With the new worker, the firm produces an additional 250 units that cost $500 because this is the salary of the new worker and to calculate the cost of one additional unit you have to do the following:
250 units ⇒ $500
1 unit ⇒ x
x=( 1*500)/250= 2
The firm's short-run marginal cost is $2.
