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Olenka [21]
3 years ago
7

Now discuss with suitable examples how the issue price of bonds payable is determined? When does the issue price results in a di

scount issue or a premium issue? What are the two methods of amortization of bonds discount/premium and how they are different from each other? What are the accounting issues when bonds payable are issued between the interest dates and when bonds payable are extinguish?
Business
1 answer:
nordsb [41]3 years ago
4 0

Answer:

How the issue price of bonds payable is determined?

The issue price is the Present Value of the Bond which is calculated by taking thee following into account:

1. Periods to Maturity

2. Maturity Value

3.Coupon Payments

4.Yield to Maturity

When does the issue price results in a discount issue or a premium issue?

<u>Discount issue</u>

When the Coupon Rate is less than the Market Rate

<u>Premium issue</u>

When the Coupon Rate is greater than the Market Rate

Two methods of amortization of bonds discount/premium

1. Effective Interest method

2. Normal Interest and Payment method

Accounting issues when bonds payable are issued between the interest dates and when bonds payable are extinguish?

1. Difficulty in compounding the interest rate or yields to maturity.

2. Use of wrong yield to maturity

Explanation:

Each requirement of this question is explained above.

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Portfolio management matrices are applied to what level of strategy?.
bazaltina [42]

Answer:

Portfolio managers oversee a collection of projects, programs and other activities that are grouped together to meet strategic business objectives. The practice of portfolio management is integral to the implementation of your organization’s overall strategic plan.

Explanation:

3 0
2 years ago
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective b
ELEN [110]

Explanation:

<u>5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?</u>

Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.

<u></u>

<u>5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?</u>

The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisement on television, and which may not generate the expected goal of increasing product sales.

The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.

7 0
3 years ago
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion t
lisov135 [29]

Answer:

1) equity = assets - liabilities

equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000

2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.

     

3) D’Lite Dry Cleaners

Income Statement

For the month ended July 31, 202x

Revenues                                                       $116,875

Expenses:

  • Dry cleaning expense $29,500
  • Rent expense $6,000
  • Wages expense $7,500
  • Truck expense $2,500
  • Supplies expense $3,600
  • Utilities expense $1,300
  • Miscellaneous expense $2,700           ($53,100)

Net income                                                      $63,775

D’Lite Dry Cleaners

Balance Sheet

For the month ended July 31, 202x

Assets:

Cash $95,325

Accounts receivable $89,750

Supplies $5,900

Land $125,000

Total assets $315,975

Liabilities:

Accounts payable $49,200

Equity:

Capital $266,775    

Total liabilities and equity $315,975

D’Lite Dry Cleaners

Statement of Owner’s Equity

For the month ended July 31, 202x

Palk, Joel, capital, beginning balance    $180,000

Additional capital raised                           $35,000

<u>net income                                                  $63,775</u>

subtotal                                                     $278,775

<u>drawings                                                   ($12,000)</u>

Palk, Joel, capital, ending balance        $266,775

Download pdf
3 0
3 years ago
"Roaming" is when people use a cell phone network different from their own.<br><br> True or False?
kap26 [50]

Answer:true

Explanation:

It refers to the mobile phone being used outside the range of its home network and connects to another available cell network.

4 0
3 years ago
Read 2 more answers
Assume the following information: Percent Complete Milling Department Units Materials Conversion Beginning work in process inven
lora16 [44]

Answer:

Equivalent units of production for materials = 5960

Explanation:

Given:

Units transferred out = 5800

Units in ending inventory = 400

%age of completion for conversion = 40%

To calculate the equivalent units of production by using the formula:

Equivalent units of production for materials = units transferred out + ( units in ending inventory × %age of completion for conversion)

= 5800 + ( 400 × 40/100)

= 5800 + ( 400 × 0.4)

= 5800 + 160

= 5960

3 0
3 years ago
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