Jan pays $70 each month for her auto insurance policy. this regular payment is called a: co-pay, deductible, premium, claim?

Cash interest is computed annually when a bond is issued for other than its face value. For a bond issued at a premium, how will

sergeinik [125]

Answer:

Under the effective interest method, as a bond approaches maturity, the interest expense decreases while the amortization of the bond premium increases.

Explanation:

E.g. a company issues $800,000 in 8% bonds when the market rate is 7%, so the bonds price is $856,850 (semiannual coupons are paid).

Journal entry to record the issuance

Dr Cash 856,850

Cr Bonds payable 800,000

Cr Premium on bonds payable 56,850

amortization of bond premium on first coupon payment:

($856,850 x 3.5%) - ($800,000 x 4%) = $29,989.75 - $32,000 = -$2,010.25 ≈ -$2,010

Journal entry to record first coupon payment:

Dr Interest expense 29,990

Dr Premium on bonds payable 2,010

Cr Cash 32,000

amortization of bond premium on second coupon payment:

($854,840 x 3.5%) - ($800,000 x 4%) = $29,919.40 - $32,000 = -$2,080.60 ≈ -$2,081

Journal entry to record second coupon payment:

Dr Interest expense 29,919

Dr Premium on bonds payable 2,081

Cr Cash 32,000

7 0

3 years ago

If a team of three workers, each making the U.S. Federal minimum wage, produced these 12 rugs, what would the total labor cost b

sergiy2304 [10]

You need to know how many hours it took these workers to make the rugs to determine the labor cost.

4 0

3 years ago

What are five foundations of economics? increasing trade between two countries makes everyone in those countries better off.

geniusboy [140]

The five foundations of trade are:

incentives
tradeoffs
opportunity cost
marginal thinking,
principle that trade creates value.

<h3>Why do we engage in trade?</h3>

There are five main foundations of trade that are the reason why people engage in trade. One of them is the profit incentive to make money from trade. Another is the tradeoffs that people are forced to make to survive.

Opportunity cost also leads to trade because people give up one thing for another and so may have to sell the thing they gave up to receive the thing they want. There is also the principle which posits that when we trade, value is created. Finally, there is marginal thinking which is thinking along the lines of the benefit of one additional unit.

Find out more on the foundations of trade at brainly.com/question/2710473

#SPJ1

5 0

2 years ago

Star workers and star athletes share a high need for ______________.

djverab [1.8K]

Star Workers and Star Athletes share a high need for achievement.

A need for achievement, also know as N-Ach, describes <u>how an individual has a desire to attain either one of these or a combination: skill mastery, great accomplishments, or high standards</u>.

Star workers and athletes are usually individuals who have a high need to become the best or reach great accomplishments in their field, thus it is accurate to say that both groups will have a high need for achievement.

7 0

3 years ago

While the four Ps help us remember the basics components of the __________, they don't have significant relevance in the marketi

Paul [167]

Answer:

Marketing mix.

Explanation:

The said term is said to be an inclusion of certain multiple areas of focus as a vital body used to explain a comprehensive marketing plan. It clearly points to a certain classifications which are common that began as the four Ps which has the inclusion of factors like product, price, placement, and promotion. All these factors are of the marketing mix and are known to influence each other. They make up the business plan for a company and handled right, can give it great success. It is of great value too because of its help in focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising existing products.

7 0

3 years ago