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3 years ago

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Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So,

she applies the ______________ process to estimate the present value of her gift.

1 answer:

Stella [2.4K]3 years ago

3 0

Answer:

discounting

hope it helps :0

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On August 1, 2009 a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest,

Leya [2.2K]

Answer:

discount on BP 8,000 debit

cash 592,000 debit

bond payable 600,000 credit

-to record issuance of the bonds--

interest expense 15,416.67 debit

interest payable 15,000 credit

discount on BP 416.67 credit

--to record year-end adjustment entry--

interest payable 15,000 debit

interest expense 3,083.33 debit

cash 18,000 credit

Discount on BP 416.67 credit

-to record first interest payment to bondholders--

Explanation:

proceeds from the bonds: 592,000

face value of the bonds. (600,000)

discount on BP (8,000)

We amortize over the life of the bond in equal parts:

8,000 / 20 payment (10years x 2 payment per year) = 500

interest accrued from August 1st to December 31th:

face value x rate x time accrued

600,000 x 6% x 5/12 = 15,000

accrued proportional amortization

amortizationfor 6 months x accrued month

from Augsut 1st to December 31th

500 x 5/6 = 416.67

February 1st payment:

600,000 x 6% x 1/12 = 3,000 interest expense

cash outlay:

600,000 x 6% x 6/12 = 18,000

amortization 500 - 416.67 = 83.33

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3 years ago

Question 2 of 10

11111nata11111 [884]

Answer:c

Explanation:

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3 years ago

Read 2 more answers

What is the most efficient way to adjust the size of the picture?

Marat540 [252]

Answer:

Our easy-to-use Image Resizer lets you adjust the size of your photos without compromising quality. ... accidentally distort your images, and the fun house look isn't the most flattering for photography. ... The best part, this step is super easy!

Explanation:

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3 years ago

If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian dollars will buy ____ worth of

Mazyrski [523]

Answer:

U.S. dollars = 14.012 U.S. dollars

Explanation:

Below is the exchange rate:

0.92777 Canadian dollars = 1 U.S dollars

Thus to find the amount of U.S. dollars bought from the 13 Canadian dollars, just divide the 13 Canadian dollars from 0.92777. Therefore the resulting answer will be the U.S. dollars.

U.S. dollars = 13 / 0.92777

U.S. dollars = 14.012 U.S. dollars

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3 years ago

John borrows $10,000 for 10 years at an effective interest rate of 10%. He can repay the loan using the amortization method with

Ierofanga [76]

Answer:

The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19

Explanation:

Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.

$FutureValue=\frac{A((1+r)^{n} -1)}{r}$

Where:

A = equal annual savings into the sinking fund (that is $627.45)

r = effective rate of the sinking fund (14%)

n = 10 years

Everything should look like this.

$FutureValue=\frac{627.45((1+0.14)^{10} -1)}{0.14}$

$Future Value=12,133.19$

Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.

Best of luck.

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4 years ago