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
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.

You might be interested in
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can
ElenaW [278]

Answer: $4

Explanation:

The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.

When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.

The Variable Costs for the containers is $4 so that is the transfer price as well.

7 0
2 years ago
Vitale Hair Spray had sales of 27,000 units in March. A 60 percent increase is expected in April. The company will maintain 20 p
romanna [79]

Answer:

50,490 units

Explanation:

The computation of the number of units the company should produced is shown below:

= Expected sales units + ending inventory units - opening inventory units

where,

Opening inventory units is 1,350 units

Expected sales units is

= $27,000 + $27,000 × 60%

= $27,000 + $16,200

= 43,200 units

The ending inventory units is

= $43,200 × 20%

= 8,640 units

So, the units to be produced is

= 43,200 units + 8,640 units - 1,350 units

= 50,490 units

5 0
3 years ago
we come to them who weep foolishly and sit down and cry for company, instead of imparting to them truth and health in rough elec
gtnhenbr [62]

Answer:

Emerson elaborates what is know as rough love

Explanation:

Sometimes to bring out the best in a person it is necessary to do things against his or her will, this happens a lot in cases where the parent educates the child or a close family member or friend worries for the welfare of the loved one, and is determined to taking action to change the situation and that includes applying discipline; or for example, hiding drinks from an alcoholic's son or even punishing a children for misbehave.

Emerson elaborates this in a succinct and not too apparent way, emphasizing the need for relationship with discipline.

4 0
3 years ago
with this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be than
ikadub [295]

The type of externality where market equilibrium quantity produced will be more than socially optimal quantity in absence of governemtn intervention is Negative externality.

Let understand that whenever a production of good or service negatively affect the unrelated third party who is not directly involved in a market transaction, it is said that negative externality exists in the scenario.

A very good example of commonly cited Negative Externalities are air pollution and noise pollution which was caused during production an affects unrelated third party.

If there is presence of government intervention in the production, then, the production of goods or service will be halted.

Therefore, in conclusion, this type of externality is called the Negative Externality.

Read more about Negative Externality here

<em>brainly.com/question/13901028</em>

7 0
2 years ago
The ALG Manufacturing Company has gathered the following information for the month of September:• 6,000 units in the beginning W
mars1129 [50]

Answer:

C. 66,000

Explanation:

Ending Work in Process (WIP) = Beginning Work in Process + Units Started into Production - Units Completed and Transferred

Ending WIP = 6,000 * 100% + 60,000 - 50,000 = 16,000

Equivalent Units of Production (EUP) = Units Completed + Units Ending WIP x % of conversion

EUP = 50,000 + 16,000 * 100 = 66,000

4 0
3 years ago
Other questions:
  • Dyan, the owner of expert restoration services, inc., adheres to the "principle of rights" theory. under this theory, a key fact
    6·1 answer
  • Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common
    14·1 answer
  • Which term best completes the statement below? Governments can levy ­­­­­­­­­­­­­­­­­­­ _____ and tariffs on imports. A. import
    12·1 answer
  • Biometrics (retinal scans, fingerprints, and the like) are mainly used for ____ by large security-minded entities such as bankin
    12·1 answer
  • Causwell company began 2018 with 10,000 units of inventory on hand. the cost of each unit was $5.00. during 2018 an additional 3
    12·1 answer
  • The insurance policy, together with the policy application and any added riders form what is known as
    11·1 answer
  • Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from Novemb
    7·1 answer
  • When Paul listened to the presidential candidate debates, he heard one candidate proposing to increase taxes and the other candi
    10·1 answer
  • Short-run macroeconomic equilibrium is when (Hint: Be careful! Be sure to return to the general definition of equilibrium):
    15·1 answer
  • A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a monthly payment of $1,773.40. After making two m
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!