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Illusion [34]
3 years ago
5

Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $96,000 and pay interest every January 1

and July 1. The bonds were sold for $115,787 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of:______
Business
1 answer:
Natali5045456 [20]3 years ago
5 0

Answer:

$ 4,631.48  

Explanation:

The interest expense is the cost of servicing the debt owed by the company to the bondholders while the coupon interest is the portion of the annual interest paid as cash to investors(bondholders)

Using the effective interest method,the interest expense which is the opening carrying value of the bond(cash proceeds) multiplied by the market rate of interest divided by 2(semiannually interest payment)

interest expense=$115,787*8%*6/12=$4,631.48  

The first interest expense on July 1 of the first year $ 4,631.48  

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Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1234.00 and have not been paid
Tems11 [23]

Sally is buying a home and the closing date is set for April 20th. the annual property taxes are $1234.00 and have not been paid yet. The answer is $368.51.

Step 1: Find the daily rate; property taxes for the year ($1234.00) / 365 days = $3.38.

Step 2: Seller will credit buyer from January through midnight the day before closing. Calculate the exact number of days; January 31 + February 28 + March 31 + April 19 = 109 days Step 3: Multiply the daily rate ($3.3808219178) x Number of days (109) = $368.51

Property tax is the sum that a landowner must pay to the local government or municipal body in their area. Every year, the tax is due and payable. Real estate assets include real estate, commercial real estate, and residential real estate that is rented to third parties.

Owners of real estate must pay property taxes that are computed by the municipal authority where the asset is situated.

Property tax is calculated based on the value of the property, which can be a tangible personal property or real estate in various countries.

Learn more about property taxes here:

brainly.com/question/11544476

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6 0
2 years ago
Consider public policy aimed at smoking.A. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If
Ede4ka [16]

Answer:

A. Elasticity measure the change in quantity demanded that comes with a change in price. The elasticity formula is;

Elasticity = %change in quantity demanded / % change in price

0.4 = 20% / %change in price

%Change in price =  20%/0.4

= 0.5

= Increase price by 50%

= 50% * 5 = $2.50

<em>Government should increase the price by $2.50 to make it $7.50. </em>

B. Effect is larger 5 years from now

Effect will be larger 5 years from now than 1 year from now. This is because in 5 years the high prices would have forced smokers to look for more alternatives to smoking than in a year.

C. Teenagers have less income.

Teenagers likely have a higher price elasticity because they do not have the income to support an increase in the price of cigarettes so when the prices increase, they buy less than adults who are more likely to have an income stream.

3 0
3 years ago
Types of Control Systems Controlling is one of the basic functions of management. It is critical to an organization's effectiven
Annette [7]

Answer: Option D

Explanation: In simple words, controlling refers to the function of management in which manager sets the standards of performance, compares the performance with the standards and take corrective actions in case of any discrepancy.

Controlling helps the organisation to achieve its goals by making the employees working towards the same goal determined in the planning stage. Controlling sets the standards of performance for the employees which works as a guide in their job.

Hence the correct option is D.

5 0
3 years ago
In an arithmetic progression U5=-1/2 and S7=21 find a, d and U9​
LenaWriter [7]

Answer:

The value of a, d, and U9 is "\bold{ \frac{27}{2}, - \frac{7}{2}, \ and ,  - \frac{29}{2}}".

Explanation:

Given:

U_5=-\frac{1}{2}\\\\S_7=21

Find:

a, d, U9=?

formula:

T_n=a+(n-1)d\\\\S_n=\frac{n}{2}(2a+(n+1)d)

Solve:

\to U_5 = a+4d= -\frac{1}{2}\\\ \to  2a+8d= -1\\\ \to  2a= -1-8d....(a)\\\\ \to S_7 =\frac{7}{2}(2a+(7-1)d)\\\\ \to S_7 =\frac{7}{2}(2a+6d)\\\\ \to 21= \frac{7}{2} (2a+6d)\\\\ \ put \ the \ 2a \ value\\\\ \to 21= \frac{7}{2} ((-1-8d)+6d)\\\\ \to 21= \frac{7}{2} (-1-8d+6d)\\\\ \to 21= \frac{7}{2} (-1-2d)\\\\ \to \frac{21 \times 2}{7}= -1 -2d\\\\ \to 6 = -1 -2d\\\\ \to 2d=-7\\\\ \to d= -\frac{7}{2}

put the value of d in equation a:

\to  2a= -1-8 \times \frac{-7}{2}\\\\\to  2a= -1+ 28\\\\\to 2a= 27\\\\\to a =\frac{27}{2}\\

\to \bold{U_9 = a+8d}\\\\

put a and b value in above equation:

\to U_9 = \frac{27}{2}+8\times\frac{-7}{2} \\\\\to U_9 = \frac{27}{2}- 28\\\\\to U_9 = \frac{27-56}{2}\\\\\to U_9 = \frac{-29}{2}\\\\

8 0
3 years ago
What control procedures could Petty Corporation have employed to prevent this unauthorized use of cash? Classify each control pr
Pavel [41]

Answer:

Following are the Control Procedure of SAS 78

Control Procedures:

  • All checks ought to require the treasurer's mark.  
  • A holding organization can be utilized to confirm representative honesty through record verification.  
  • The inside inspectors ought to play out an occasional survey of business ledgers, which are as often as possible used to counterbalance deceitful exchanges.

5 0
3 years ago
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