1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Klio2033 [76]
3 years ago
8

Carmen Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every January 1 a

nd July 1. The bonds were sold for $117,205 based on the market interest rate of 12%. Carmen Company uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the same year, Carmen should record interest expense (rounded to the nearest dollar) of a.$7,500. b.$8,790. c.$14,065. d.$7,032.
Business
1 answer:
il63 [147K]3 years ago
4 0

Answer:

d. $7,032          

Explanation:

The computation of the interest expense is shown below:

= Sale value of the bond × market interest rate ÷ 0.5

= $117,205 × 12% ÷ 0.5

= $117,205 × 6%

= $7,032

Simply we multiply the sale value of the bond with the market interest rate so that the accurate amount of the interest expense can come.

We divide it by 0.5 because as the number of months is 6 months and total months is 12. The six month is calculated from the January 1 to July 1

You might be interested in
For 2020, your company planned on selling 10,000 units of its highest priced product - Fish Sticks, which is also its highest ma
Eddi Din [679]

Answer: Negative Sales Mix Variance

Explanation:

With regards to the above question, the company has a negative sales mix variance. First and foremost, we should know that the sales mix variance simply has to do with the difference between the actual sales mix and the budgeted sales mix of a company or organization.

From the question, there'll be negative sales mix variance and this will bring about a reduction in the revenue of the company as the budgeted sales will be lesser than actual sales. Therefore, Profit also reduces.

6 0
2 years ago
__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.
Westkost [7]
It would be frictional unemployment
6 0
3 years ago
Assume you are to receive a 30-year annuity with annual payments of $2,000. The first payment will be received at the end of Yea
max2010maxim [7]

Answer:

Total FV= $678.615.02

Explanation:

<u>First, we need to calculate the value of the annuity at the end of the last payment:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,000*[(1.06^30) - 1]} / 0.06

FV= $158,116.37

<u>Now, the total future value after 25 years:</u>

FV= PV*(1 + i)^n

FV= 158,116.37*(1.06^25)

FV= $678.615.02

6 0
2 years ago
Which of the following is a false completion of the following: "Congress has the authority to declare war..."
Yakvenalex [24]

Answer: E. and exercise this authority with great frequency

Explanation:

The Congress has the authority to declare war but has not been exercising this authority with great frequency most times they are reluctant to declare war and has only declared eleven wars in the history of America.

They have rarely exercise this power one of the reasons being to cut down funding of war, they preferred to authorize presidential military action without a declaration of war.

8 0
3 years ago
Why do markets exist?
FinnZ [79.3K]

Answer:

The correct answer is *to provide a place for people to trade goods and services

Explanation:

trading can be simply described as the act of exchanging values between parties.

a market is a place where the sellers and buyers meet and trade, in which the buyers buy what they need and want from the sellers at a price both of them can agree upon.

8 0
3 years ago
Other questions:
  • Question 1 Saved
    15·1 answer
  • Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will in
    14·1 answer
  • Canterbury Co. issues a discounted, non-interest-bearing note in exchange for borrowed funds. Choose whether the cash received w
    6·1 answer
  • Emily Corporation sells two products: hurricane lamps and flashlights. Hurricane lamps account for 70 percent of the units sold,
    15·1 answer
  • Glasgow Enterprises started the period with 65 units in beginning inventory that cost $3.40 each. During the period, the company
    10·1 answer
  • Prime Inc. has come up with a new product development project for which the project manager forms a team. The team includes Cam,
    9·1 answer
  • SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a cap
    8·1 answer
  • A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of size (measur
    14·1 answer
  • Describe why cash flow management is important to a business and its financial health. Use a recent financial news story as an e
    15·1 answer
  • Willing to give a lot of points
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!