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Georgia [21]
3 years ago
7

Douglas Company issued 5-year bonds on January 1. The 12% bonds have a face value of $35,000,000 and pay interest every January

1 and July 1. The bonds sold for $37,702,483 based on the market interest rate of 10%. Douglas Company uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the same year, Douglas Company should record interest expense (rounded to the nearest dollar) of
Business
1 answer:
Blababa [14]3 years ago
4 0

Answer:

Given:

12% bonds have a face value of $35,000,000

Bonds sold for $37,702,483 based on the market interest rate of 10%.

∴

The interest expense on July 1 can be computed as

Interest expense = Bonds sold × Effective market interest rate (\frac{10}{2} = 5%)

= $37,702,483 × .05 (1/2 of the effective interest rate)

= $1,885,124

⇒ The interest expense on July 1 is $1,885,124

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Answer:

$0.79

Explanation:

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2 years ago
In the context of employee engagement, it is observed that the highly engaged employees feel a deep connection to their company.
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2 years ago
A restaurant offers a catering service which costs $19.50 per person with a $91.75 service charge. For parties of 70 or more peo
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Answer:

1. T=19.5n+91.75, where n<70

2. T=15n+45, where n≥70

Explanation:

1. The first linear function can be expressed as;

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where;

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Replacing;

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T=19.5n+91.75

The first equation: T=19.5n+91.75, where n<70

2. The second linear function can be expressed as;

Total cost of catering services=(Cost per person×number of people, n)+Service charge

where;

Total cost of catering services=T

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Replacing;

T=(15×n)+45

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3 years ago
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​POPS' owners and managers use the​ company's income statement to ultimately determine the​ company's <u>double </u><u>bottom line</u>.

More about income statement:

One of the three financial statements on which stock investors rely is the income statement. (The balance sheet and cash flow statement round out the list.) Investors who wish to evaluate a company's profitability and potential growth must comprehend an income statement.

Morea about double bottom line:

By adding a second bottom line to gauge a for-profit company's success in terms of its positive social impact, the double bottom line (also known as 2BL or DBL) tries to expand the traditional bottom line, which assesses fiscal performance and accounts for financial profit or loss.

Learn more about bottom line here:

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