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Alex73 [517]
3 years ago
12

On 1/1/2010, Fikle Corporation issued $3,000,000 of 10% bonds due December 31, 2019. Interest on the bonds is payable annually e

ach December 31. The bonds were sold for $3,402,605, which is market yield of 8%. Legal and other costs of $210,075 were incurred in connection with the issue, which increased the cost of borrowing (effective rate) from 8% to 9%.1. Record the sale of the bond and all required interest entries for 2010 and 2011. Use the straightline method to amortize discounts and premiums.2. Record the sale of the bond and all required interest entries for 2010 and 2011. Use the effective interest rate method to amortize discounts and premiums.3. Now assume that the bonds were issued on 4/1/2010 but that all other facts (amounts, rates, maturity date) remain the same. Record the sale of the bond and all required interest entries for 2010 and 2011. Use the straight-line method to amortize discounts and premiums.4. Now assume that the bonds were issued on 4/1/2010 but that the maturity date was changed to 4/1/2020 and that interest is now payable annually on April 1 of each year. Record the sale of the bond and all required interest entries for 2010 and 2011. Use the effective interest rate method to amortize discounts and premiums.
Business
1 answer:
xeze [42]3 years ago
6 0

Answer:

Hi!

Explanation:

I advise you to visit this resource. Otherwise, brains begin to boil - http://mavizion.com

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A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a cus
il63 [147K]

Answer:

The correct answer is A. Differentiation.

Explanation:

They are marketing strategies used by companies to highlight a product about similar offers in the market.

This strategy seeks to provide the company with a competitive advantage, it is important that this strategy is directed directly to a specific segment of the market and delivers a concrete and positive message about the different product to other products in a market.

This strategy offers a small business survival opportunity when they compete in a market dominated by large companies.

It is important that the company is clear about the principle of this type of strategy, since achieving being different is not the objective, the particularity is being relevant and achieving consumer preference, that is, it is not enough to be different from the others, that difference must be followed by a benefit that the client supposes important and effective.

5 0
3 years ago
At the beginning of the year, SnapIt had $12,400 of inventory. During the year, SnapIt purchased $39,800 of merchandise and sold
AveGali [126]

The journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600.

<h3>Inventory shrinkage</h3>

Based on the information given the appropriate  the journal entry to record the inventory shrinkage is :

Debit Cost of goods sold $18,600

Credit Inventory $18,600

($12,400+$39,800-$33,600)

(To record inventory shrinkage)

Inconclusion the journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600

Learn more about inventory shrinkage here:brainly.com/question/6233622

4 0
3 years ago
Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 in
Viktor [21]

Answer:

The correct answer to the following question is option B) $2500 .

Explanation:

Given information -

Proceeds to be received on life insurance - $150,000

Carin receives 10 installments of $17,500 each , which takes total amount to - $175,000

Premiums paid by Carins husband - $60,000

Carin collected - $17,500 from insurance company

The interest element that would be included in her gross income -

$175,000 - $150,000

= $25,000

She is receiving payments in form of annuity, and the amount that should be included in her gross income in the first year should -

$25,000 / $175,000  x  $17,500

= $2500

8 0
3 years ago
Changes in the equilibrium interest rate will Group of answer choices . affect both the size of the domestic output and the allo
vodomira [7]

Answer:

Changes in the equilibrium interest rate

  • affects both the size of the domestic output and the allocation of capital goods among industries.

Explanation:

Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.  

The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa

An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.

Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.

The equilibrium interest rate changes with the economy and monetary policy.

6 0
3 years ago
Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,000,
aliya0001 [1]

Answer:

$(94,179)

Explanation:

Particulars        Year 0               Year 1            Year 2

Cash flows     ($1,500,000)  A$1,000,000   A$2,000,000

DCF 14%              1                    0.8772         0.7695

Present Values 1500,000      A$877,200      A$ 1,538,935

Conversion           1                    0.55                      0.60

P V in US$        (1,500,000)     482,460              923,361

Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)

8 0
3 years ago
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