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
astraxan [27]
4 years ago
7

On July 1, 2016, Sheffield Corp. issued 9% bonds in the face amount of $11100000, which mature on July 1, 2022, The bonds were i

ssued for $9720000 to yield 10%, resulting in a bond discount of $1380000. Sheffield uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30 2018, Sheffleld's unamortized bond dlscount should be a. $1436700 b. $1466300 c. $1454300 d. $1424300
Business
1 answer:
lidiya [134]4 years ago
3 0

Answer:

Explanation:

Discount bonds are issued on discounted price of their face value

Here discount = 11100000-9720000

= 1380000

on 1/07/2016

cash outflow or book value of bond

= 9720000

on 30/06/2017

interest paid = 999000

yield expected = 972000 ( 10% of issue price )

interest amortized

= 999000-972000 = 27000

book value = 9720000 + 27000

= 9747000

on 30/06/2018

interest paid = 999000

yield expected = 974700 ( 10% of book value )

interest amortized

= 999000-974700 = 24300

value amortized = 24300 + 27000 = 51300

book value = 9747000 + 24300

= 9771300

Amount unamortized

1380000 - ( 51300 )

= 1328700

You might be interested in
Which memo provided advanced general principles to consider in cases involving corporate wrongdoing in that it makes clear that
Gekata [30.6K]

Answer:

E. Thompson memo

Explanation:

The name 'Thompson Memo' was used to honor the Deputy attorney General that first issued the memo in 2003. His name is Larry Thompson.

The memo was created to distinguished the line between the 'honest mistake' that the company might do and an actual wrongdoings that must be punished by law.

The memo consist of several criteria that future prosecutors can use to determine whether a company should be punished or not. Those criterias are:

- The nature/seriousness of the offense

- Whether they did a similar 'mistake in the past

- Whether the company admit the mistake by their own or whether it's exposed by other people

- Whether the company proposed a remedial action.

8 0
3 years ago
At what point in the job application process are soft skills particularly important
Reika [66]
A when writing a cover
4 0
3 years ago
Read 2 more answers
What are the three primary sources of assets?The three primary sources of assets are(1) investments by owners (issue of stock),(
ANEK [815]

Answer:

True

Explanation:

The three main sources of assets for a business are:

  1. investments by owners (total paid in capital), refers to the money that the owners are willing to invest in the company and it should be used to finance operating activities.
  2. borrowing from creditors, refers to both long term and short liabilities that allow the company to increase their assets, e.g. merchandise or equipment purchased on credit, or a loan.
  3. earnings activities, refers to the company's retained earnings from previous years that is reinvested in new or existing projects.
5 0
3 years ago
the condition of famers before amul ? 3 sentence pls send the answer . this is for my English project​
labwork [276]

Answer:

the life of a farmer in Kaira was very much like that of farmers anywhere else in India. His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off-seasons. Their income from milch buffaloes was undependable. The milk marketing system was controlled by contractors and middlemen. As milk is perishable, farmers were compelled to sell their milk for whatever they were offered. Often they had to sell cream and ghee at a throwaway price.

Explanation: reword in your own words so there is no plagiarism

3 0
3 years ago
What is a reason someone would want to include a savings in a budget?
katrin2010 [14]
Having a saving in the budget will one help obviously save more money for the household and it will build interest over the years.
7 0
4 years ago
Other questions:
  • A grain elevator operator bought a futures contract for 5,000 kilograms of rice at $1.50 per kilogram. The initial margin is $4,
    5·1 answer
  • The account​ "Accounts Receivable" began with a zero balance and then had the following​ changes: increase of​ $625, decrease of
    9·1 answer
  • Union Local School District has bonds outstanding with a coupon rate of 3.1 percent paid semiannually and 22 years to maturity.
    13·1 answer
  • Private investment as a share of the economy tends to be higher in countries with ___ levels of economic freedom.
    11·1 answer
  • Calculate the weighted average cost of capital for the following firm: it has $275,000 in debt, $650,000 in common stock and $11
    12·1 answer
  • An installment loan _____.
    7·1 answer
  • Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on insta
    6·1 answer
  • If you start investing a little money now you will most likely have a lot more
    7·2 answers
  • Credit card companies fall into three groups: those who offer credit scores toeveryone, those who offer tocardholders,and thosew
    10·1 answer
  • 1. Production in insurance refers to the policies they produce: * True or False?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!