Answer:
$54.17 per bond
Explanation:
the journal entry to record the issuance of the bond:
Dr Cash 1,100
Cr Bonds payable 1,000
Cr Premium on bonds payable 100
The bond premium amortization using straight line amortization:
$100 / 30 = $3.33 per coupon payment
journal entry to record coupon payment:
Dr Interest expense 41.67
Dr Premium on bonds payable 3.33
Cr Cash 45
the yearly interest expense = $41.67 x 2 = $83.34 x (1 - tax rate) = $83.34 x 0.65 = $54.17
Answer:
$3979.79
2 $4023.63
Explanation:
Here is the full question used in answering this question :
Find the interest earned on $15,000 invested for 6 years at 4% interest compounded as follows. a. Annually b. Semiannually (twice a year) c. Quarterly d. Monthly e. Continuously
the formula for determining interest earned is :
future value - present value
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
1. 15,000 ( 1 + 0.04)^6 = 18979.79
18979.79 - 15,000 = $3979.79
2 1. 15,000 ( 1 + 0.04/2)^12 = 19023.63 = $4023.63
Answer:
a.Supplies expense would be debited for $600.
Explanation:
Assuming there is no opening Inventory:
End of period supplies balance = Opening balance + purchases in the period - Expense for the period
200 = 0 + 800 - Expense for the period
Expense for the period = 800 - 200
Expense for the period = 600
So the correct option is a.Supplies expense would be debited for $600.
