Answer:
Face Value of Bonds = $100000
Unamortized Premium = $2000
Conversion of Equity Shares = 2000 * $20 = $40,000
Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000
Journal Entries
Account Title & Explanation Debit Credit
Bond Payable Account $100000
Unamortized Premium $2000
Common Stock $40000
Paid in Capital in Excess of par $62000
(To record conversion of Bonds)
Answer:
$27,800
Explanation:
Given that
Government Divisional segment margin = $40,300
Export Products Division = $92,700
Common fixed expenses = $105,200
The computation of net operating income is shown below:-
Total segment margin = Government divisional segment margin + Export Products Division
= $40,300 + $92,700
= $133,000
Net operating income = Total segment margin - Common fixed expenses
= $133,000 - $105,200
= $27,800
Answer:
False
Explanation:
Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).
What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.
Answer:
r = 11.5%
Explanation:
Given data:
invested amount $20,000
withrawl amount after 5 year is $5000
Amount at the end of 10th yr is $50,000
present value is given as
where
A - amount after given n year
Let 
squaring on both side
solving for t we get
t = 1.711
so, 
Answer:
(d) debt; opposite direction
Explanation:
Bonds or debentures represent fixed interest bearing instruments issued by corporates to raise long term funds i.e usually greater than 1 year repayable after a fixed duration.
Bonds could be of various forms such as zero coupon bonds, deep discount bonds, face value bonds etc
The common aspect of all being bonds represent debt which a corporation owes which must be repaid after a fixed duration. Also bonds demand periodic interest payments i.e fixed obligation which cannot be refused by the issuer company.
There is an inverse relationship between bond prices and market interest rates.
Reason : This is because if a higher interest rate prevails in the market than the coupon rate offered by the issuer, the issuer will have to reduce the price of it's bonds so as to make them attractive else investors would rather invest in other bonds in the market offering a higher rate of return.
