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padilas [110]
3 years ago
13

Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a curren

t price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Select one: a. 9.01 percent b. 8.46 percent c. 8.78 percent d. 9.32 percent e. 8.93 percent
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

c.) 8.78 percent

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

<em>Note: If using the same calculator as me, key in the numbers first before the function .</em>

Total duration of investment ;N = 14

YTM ; I/Y  = 7.5%

Face value or Par value; FV = 1000

Current Price; PV = -1108.6

then CPT PMT = $87.793

Coupon payment = $87.793

Coupon rate = (Coupon payment / Par value) *100

Coupon rate = (87.793/1000) * 100

                    =0.08779 *100

                    = 8.779%

Therefore, the coupon rate = 8.78%

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As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doubtful accounts of $27
Rudik [331]

Answer:

a. 1. Debit Accounts receivable $180,000

Credit Sales $180,000

2. Debit cash $125,000

Credit Accounts receivable $125,000

3. Debit Sales return $20,000

Credit $20,000

4. Debit Provision for bad debts expense $35,000

Credit Accounts receivable $35,000

5. Debit Accounts receivable $ $2,500

Credit Provision for bad debts expense $2,500

Debit Cash $2,500

Credit Accounts receivable $2,500

B. Debit Bad debts expense $27,500

Credit provision for bad debt expense $27,500

Explanation:

1. Sale on account will increase the accounts receivable. So we have to debit accounts receivable and credit to sales in the amount of $180,000

2. Collections will decrease the accounts receivable due payments made by the customer. So we have to debit cash and credit accounts receivable by $125,000

3. Sales return is a contra asset account that will decrease the accounts receivable and also the net sales. So we will debit sales return and credit accounts receivable in the amount of $20,000

4. Write offs will decrease the provision for bad debts account as well as the accounts receivable accounts by $35,000

5. Recovery of bad debts previously written off has no effect in accounts receivable but will increase the provision for bad debts due to reversal of entry previously made. First, we will reverse the original written off entry. Debit Accounts receivable and credit provision for bad debts expense in the amount of $2,500. Then we will record the collection by debiting cash and crediting accounts receivable in the amount of $2,500

B. Let’s determine the balance of accounts receivable first,

Beg. $275,000 + 180,000 sale on account - 125,000 collection - 20,000 sales return - 35,000 write-off = $275,000

Therefore, $275,000 x 10% = $27,500

Entry:

Debit Bad debts expense $27,500

Credit provision for bad debts expense $27,500

3 0
3 years ago
Country A and country B produce the same consumption goods and capital goods and currently have identical production possibiliti
yuradex [85]

it should be yes since it come out true

3 0
3 years ago
Moshi and her best friend have phrases they use with each other that have specific meanings. For example, when they’re upset abo
Bingel [31]

Answer:

Moshi and her best friend have agreed on the meanings of each of the symbols.

Explanation:

A symbol is a thing that is used to represent something else, particularly when a physical object is used to represent an abstract thing.

Therefore, those phrases used by Moshi and her best friend are symbols they have jointly agreed upon to use as representations specific meanings. They are effective because of their joint agreement on them. Any other phrases that they have not jointly agreed upon will have no meaning to them and they will not be effective.

4 0
3 years ago
10. Barbara Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts
katrin [286]

Answer: $17,000

Explanation:

Given that,

Budgeted beginning cash balance = $16,000

Budgeted cash receipts total = $188,000

Budgeted cash disbursements total = $187,000

Desired ending cash balance = $40,000

The excess (deficiency) of cash available over disbursements for June will be:

= Beginning cash balance + Cash receipts - Cash disbursements

= $16,000 + $188,000 - $187,000

= $17,000

5 0
3 years ago
Exercise 13-26 (LO. 5) Henry is a 50% partner in HJ Partnership. This year, the tax form he receives from HJ (Schedule K-1 of Fo
Eduardwww [97]

Answer:

20,000

Explanation:

Henry has already received the $10,000 from HJ, It would be considered as a partial withdrawal of his share of profit. His total income should be 20,000 (40,000 x 50%) so the remaining 10,000 of his share of profit may be received by him later on a future date

Henry must report on his Form 1040 from HJ for the tax year = 40,000 x 50%

Henry must report on his Form 1040 from HJ for the tax year = 20,000

3 0
3 years ago
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