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gulaghasi [49]
4 years ago
9

Enviro Company issues 8%, 10-year bonds with a par value of $230,000 and semiannual interest payments. On the issue date, the an

nual market rate for these bonds is 10%, which implies a selling price of 87 1/2. The straight-line method is used to allocate interest expense.1. Using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds?2. What total amount of bond interest expense will be recognized over the life of these bonds?3. What is the amount of bond interest expense recorded on the first interest payment date?
Business
1 answer:
andrew-mc [135]4 years ago
7 0

Answer:

Cash proceeds is  $201,250.00  

Explanation:

The cash proceeds derived from issuing the bonds can be computed as follows:

cash proceeds=87.5%*$230,000=$201,250.00  

Total interest expense on the bond is $212,519   as contained in the attached bond amortization schedule

The first payment=$201,250*10%*6/12=$10,063 as it also found in the attached

Download xlsx
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Karen Wilson and Katie Smith are looking at the company's health care options and trying to determine how much their net pay wil
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Answer:

Without cafeteria plan Karen taxable income is 2250 dollars and with cafeteria plan the taxable income is $2135.

Without cafeteria plan Katie taxable income is 2075 dollars and with cafeteria plan the taxable income is $1960.

Explanation:

A married women Karen earns = $2250

Katie single women earn = $2075

Employee contribution to health care = $115

If the Karen decline to participate in the cafeteria then her taxable income is $2250 (wages).

If the Karen accept to participate in the cafeteria then her taxable income is $2250 - $115 (contribution) = $2135

If Katie declined to participate in the cafeteria then her taxable income is $2075 (wages).

If Katie accept to participate in the cafeteria then her taxable income is $2075 - $115 (contribution) = $1960

7 0
3 years ago
Which is an example of an expense control strategy?
lana66690 [7]

Answer:

d

Explanation:

Unfortunately cutting or reducing production, or reengineering at all.

3 0
3 years ago
Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce l
kumpel [21]

Complete Question:

Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce limited quantities of her own clothing designs. After a few months of operation, she decides to apply some of the forecasting techniques she mastered in school. Which of these statements about her forecasts is correct?  

  1. Her forecasts will probably be 100% accurate.
  2. Her demand forecasts for a year from now will probably be more accurate than her demand forecasts for three months from now.
  3. Her demand forecasts for each style of skirt will be less accurate than her demand forecasts for all skirts.
  4. The best way for her to determine the amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.

Answer:

Option 4 is the correct answer

Explanation:

Because the only best way to forecast the amount of fabric required for the is dependent upon the number of customer orders for each type of skirt she receives.

Remember that the forecasting cannot be 100% correct because we human and we cannot tell the future with 100% surety. All we can do is guessing what would happen.

With the help of past data we can better estimate the demand. As their is no past data available we can make a reliable forecast of the skirt sales.

Option 3 is also incorrect because forecasting is dependant upon the reliable source of information which helps in estimating what would happen. Estimating single or combined sales is not a reliable source of information.

6 0
3 years ago
If actions of the chinese government caused a shortage of domestic currency, then the exchange rate would be
irinina [24]

this will reduce the supply of china's domestic currency which would <u>contract the supply curve of the domestic currency (of china)</u> thus would <u>create demand</u> and thus <u>increasing the exchange rate in comparison to foreign currencies</u> thus leading to <u>appreciation of china's domestic currency in relation to foreign currencies.</u>

4 0
3 years ago
Each of Professor A and Professor B at UTD has a private secretary, who can type four letters per hour. The letters are generate
nydimaria [60]

Answer:

Average waiting time = 7.5 minutes

Explanation:

UTD private secretary can type the number of letters = 4  per hour by each.

By professor, the letter generated = 3 per hour by each

Thus by pooling the average time will be the time that comes by dividing the one hour with total letters in an hour.

Use the below formula:

Average waiting time = Minutes in one hour / total letters

Average waiting time = 60 / 8

Average waiting time = 7.5 minutes

6 0
3 years ago
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