I think it’s 3 and 4 as the answer.
I think its either a) or d) Tell me if I’m wrong
Answer:
January 1, 202x, bonds issued at a discount
Dr Cash 441,361
Dr Discount on bonds payable 18,639
Cr Bonds payable 460,000
amortization of bond discount = ($441,361 x 4%) - ($460,000 x 3.5%) = $17,654.44 - $16,100 = $1,554.44
June 20, 202x, first coupon payment
Dr Interest expense 17,654.44
Cr Cash 16,100
Cr Discount on bonds payable 1,554.44
Answer:
2009 AOPI is 125
Explanation:
The question is to determine the Apples and Oranges Price Index (AOPI) for 2009 with 2002 as the base year
First step: For the base year 2002, the goods were bundled as 10 apples and 5 oranges
Therefore, we calculate the cost of these two in 2002 as follows
= 10 apples x $0.5 + 5 oranges x $1 = $10
Second step: For the 2009, the goods were 5 apples and 10 oranges however, since we are using 2002 as the base year, we will calculate the cost of this same 10 aples and 5 oranges using the 2009 value.
= 10 apples x $1 + 5 oranges x $0.25
= $12.5
Step 3: Based on these calculations with 2002 as the base year
The consumer price index = (12.5/10) x 100
The AOPI (Apple and Oranges Price Index) for 2009 assuming that of 2002 is 100 will be 125
