Answer:
$19,708,745
Explanation:
We first have to calculate the present value of the bonds:
Nper = 20 (10 years x 2 payments per year)
R = 11% / 2 = 5.5%
Payment = 83 / 2 = 41.50
Future value = 1,000
PV = ?
To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67
Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.
To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding
= $838.67 x 23,500 = $19,708,745
Answer:
The worth of the investment after 20 years = $40,995.5
Explanation:
<em>The equal annual deposit can be worked out using the future value of an ordinary annuity formula. </em>
<em>The worth of the investment after 20 years can be worked out using the future value of an ordinary annuity.</em>
<em>An an annuity is a series of equal cash flows receivable or payable for certain number years.
</em>
Future Value of an ordinary annuity (FVOA). The represents the total sum of that would accrue where a series of annual cash flow (each occurring at the end of the year) is compounded at a particular rate. It can be determined as:
FV= A × ( (1+r)^n - 1)/r).
FV- Future value
A- annual cash flow
R- rate of interest
n-number of years
FV - ?
A- 100
r- 7%
n- 20
FV = 1,000× (1.07^20 - 1)/0.07 = 40,995.5
The worth of the investment after 20 years = $40,995.5
Answer:
Supplies at the year end before adjustment $780
Supplies on the hand after adjustment <u>$225</u>
Supplies Expenses <u>$555</u>
Adjusting Entry Debit Credit
Supplies Expenses $555
Supplies $555
