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Ede4ka [16]
3 years ago
8

On June 1 of the current year, Dahli Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and

October 1. In its income statement for the current year ended December 31, what amount of interest expense should Dahli report?
Mathematics
1 answer:
shepuryov [24]3 years ago
8 0

Answer:

$14,000

Step-by-step explanation:

Amount issued = $300,000 of 8% bonds

Which means that

8/100 ×$300,000

= $24,000 annual interest

Therefore, they would pay

Monthly interest = $24,00/12 = $2000

Interest would be calculated from the day bond is issued. Interest would be calculated for seven (7) months (June - December).

Therefore, $2000×7 = $14000 interest expense

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Is y=7.5x a proportional relationship and why
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Direct Proportion functions look like this:

y=kx

'k' is the constant of proportionality and in this case its 7.5 or 15/2.

--------------------------------------------

When x=1, y=7.5
When x=2, y=15
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--------------------------------------

DIRECT PROPORTION EXPLAINED:

Say a football costs £7.50. If you buy one football you'll have to pay out £7.50, but if you you buy two footballs you'll have to pay out £15.00. Therefore the cost of the football(s) is directly proportional to the amount of footballs you buy. C=cost, f=football(s) and C<span>∝f, therefore C=kf, but as k=7.5, C=7.5f.

INVERSE PROPORTION EXPLAINED:

If it were to take 8 hours for one bricklayer to set up a wall, how long would it take for two bricklayers to set up a wall? The answer in this case would be 4 hours.

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Therefore T</span><span>∝1/b, and T=k/b. In this case k=8 so T=8/b.

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