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
Scrat [10]
3 years ago
8

A company issued 6-year, 8% bonds with a par value of $450,000. The market rate when the bonds were issued was 7.5%. The company

received $454,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
Business
1 answer:
kozerog [31]3 years ago
3 0

Answer:

$17,667

Explanation:

Premium on bonds

= $454,000 - $450,000

= $4,000

Cash interest paid

= $450,000 × 8% × 6/12

= $18,000

Amortization of premium for each period

= $4,000 ÷ 12

= $333

Therefore,

Interest expense

= $18,000 - $333

= $17,667

You might be interested in
The arrival of personal computer technology gave rise to client server networks that replaced traditional mainframe and minicomp
pishuonlain [190]

Answer:

The correct answer is letter "B": technological paradigm shift.

Explanation:

A paradigm shift takes place when the is a change in the methods and practices that were traditionally used and were conceived as main references due to the introduction of new ideas. Technological paradigm shifts are those caused by the creation of new technology that abruptly alters the market.  For instance, the introduction of e-mails replaced faxes and courier services for mailing.

6 0
3 years ago
Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in aust
Andrews [41]

Answer:B

Explanation:

5 0
3 years ago
Bowzer Co. has just received $2.7 million from the sale of one of its divisions. The company has 375,000 shares outstanding that
Readme [11.4K]

Answer:

$76.93 per share

Explanation:

The computation of ex-dividend stock price is shown below:-

Sale of division = $2,7,00,000

Outstanding shares = 375,000

Dividend per share = Sale of division ÷ Outstanding shares

= $2,7,00,000 ÷ 375,000

= $7.2

Stock price after dividend = Sold shares - Dividend per share

= $84.13 - $7.2

= $76.93 per share

Therefore for computing the stock price per dividend we simply subtract dividend per share from sold shares.

3 0
4 years ago
Which of the following best explains why the media industry is characterized
Gwar [14]

Answer:

The answer is C. Government licensing allows media companies to have a near monopoly.

Explanation:

Not anyone can start a media company just because they want to. There are barriers to entry such as the large capital expenditure, staffing, and the government licensing.

Among these, the major contributor towards the marketto become an oligopoly is the government licensing process.

There are many things to consider and do during the licensing process and it is highly time consuming as well. Moreover, the costs involved is significantly high as well.

7 0
3 years ago
Read 2 more answers
The adjusting entry for accrued interest on a note receivable would include a __________ to __________.
poizon [28]
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
6 0
2 years ago
Other questions:
  • Below is the listing of a bond issued by international business machines corporation (ibm). below the detail of the bond is the
    10·1 answer
  • Curtis invests $250,000 in a city of Athens bond that pays 7 percent interest. Alternatively, Curtis could have invested the $25
    11·2 answers
  • Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid sem
    10·2 answers
  • A community council must decide which recreation facilities to construct in its community. Four new recreation facilities have b
    14·1 answer
  • The budgeted production of Taurus, Inc. is 10,000 units per month. Each unit requires 40 minutes of direct labor to complete. Th
    11·1 answer
  • When Claire purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a red
    9·2 answers
  • Having recently purchased a new computer, Jake will invest in _____ that will protect his computerfrom data corruption, pop-up a
    8·1 answer
  • Step Up Ladders Company provides the following financial​ information: Income from operations $ 200 comma 000 Interest expense 4
    14·1 answer
  • Automation has improved the quality and efficiency of repetitive tasks. True or False
    6·2 answers
  • n a small open economy with perfect capital mobility, if the domestic interest rate were to rise above the world interest rate,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!