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kodGreya [7K]
3 years ago
6

Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.55 percent and semiannual payments. The bond mature

s in 22 years, with a yield to maturity of 4.11 percent, and a par value of $5,000. What is the market price of the bond

Business
1 answer:
ElenaW [278]3 years ago
8 0

Answer:

$4,597.10

Explanation:

In this question we use the Present value formula that is shown on the attachment below:

Given that,  

Future value = $5,000

Rate of interest = 4.11%

÷ 2 = 2.055%

NPER = 22 years × 2 = 44 years

PMT = $5,000 × 3.55%  ÷ 2 = $88.75

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the market price of the bond is $4,597.10

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Below are transactions for Wolverine Company during 2021.
Leona [35]

Answer:

Wolverine Company

Journal Adjusting Entries:

a) Debit Deferred Revenue $1,050

Credit Rent Received $1,050

To adjust rent received for December.

b) Debit Insurance Expense $5,460

Credit Prepaid Insurance $5,460

To adjust insurance expense for the year.

c) Debit Wages & Salaries $1,100

Credit Wages & Salaries Payable $1,100

To accrue salaries for the month of December.

d) Debit Interest on Loan Account $110

Credit Interest on Loan Payable $110

To accrue interest on loan for the year.

e) Debit Supplies Expense $2,000

Credit Supplies Account $2,000

To record supplies used during the year.

Explanation:

a) Adjusting entries are end of an account period's journal entries used to accrue income or expenses that occurred but are not accurately recorded or because they do not involve actual cash flows.  Adjusting entries ensure that the accrual concept and the matching principle of generally accepted accounting principles are complied with.

b) Journal entries record transactions that occur on a daily basis or at the end of the accounting period.  They show the accounts to be credited or debited in the Ledger.

7 0
3 years ago
Sunland Company incurs the following costs to produce 11400 units of a subcomponent: Direct materials $9576 Direct labor 12882 V
anygoal [31]

Answer:

$4,392

Explanation:

Sunland Company

Therefore the costs are eliminated if they outsource the manufacturing:

Direct materials $9,576

Direct labor $12,882

Variable overhead $14,364

Total $36,882

Their new cost is ($2.85 X 11,400) $32,490

$36,882 - $32,490 = $4,392

If Sunland accepts the offer the net income increase (decrease) by $4,392

8 0
3 years ago
Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.
user100 [1]

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>
  • The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
  • The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>
  • Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
  • The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

  • cash flow from operating operations
  • cash flow from investing activities
  • cash flow from financing activities.

The cash flow statement of a corporation includes all three.

  • Items like dividends and interest payments are excluded.
  • stock, debt, or alternative sources of funding.
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To learn more about financing activities visit:

brainly.com/question/16377227

#SPJ4

3 0
2 years ago
The Goliath Inc. decides to pay the following dividends over the next three years: $2, $2.6, and $3.38. Thereafter, the company
pochemuha

Answer:

The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.

Explanation:

7 0
3 years ago
Read 2 more answers
Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund ea
antiseptic1488 [7]

Answer:

$1,724.138

Explanation:

Given:

Payment received each year = $125,000

Rate of return = 7.25 % = 0.0725

Present value = ?

Computation of Present value:

Present value = Payment received each year / Rate of return

= $125,000 / 0.0725

= $1724137.93

Present value = $1724137.93

Present value = $1,724,138 (approx)

Therefore, firm have to contribute  $1,724.138

5 0
3 years ago
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