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
stich3 [128]
2 years ago
10

NEED HELP!! PLEASE ID APPRICATE IT

Business
2 answers:
Sphinxa [80]2 years ago
8 0
Graph number 2 is correct
Natalija [7]2 years ago
4 0
Graph # 2 is the answer
You might be interested in
Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest r
AlexFokin [52]

Answer:

Pretzelmania, Inc.

1. Records:

Debit Cash $70,000

Credit Bonds Liability $70,000

To record the issuance of 7% bonds at face value.

June 30:

Interest Expense $2,450

Cash payment for interest $2,450

To record the first interest expense and payment.

(No amortization of discounts or premiums)

December 31: (not required but showed for emphasis)

Debit Interest Expense $2,450

Credit Cash payment for interest $2,450

To record the second interest expense and payment.

(No amortization of discounts or premiums)

2. Records:

Debit Cash $63,948

Bonds Discounts $6,052

Bonds Liability $70,000

To record the issuance of 7% bonds at discounts.

June 20, 2015:

Debit Interest Expense $2,557.92

Credit Amortization of bonds discounts $107.92

Credit Cash payment for interest $2,450

To record the first interest expense and payment, including amortization of bonds discounts.

December 31, 2015: (not required but showed for emphasis)

Debit Interest Expense $2,562.24

Credit Amortization of bonds discounts $112.24

Credit Cash payment for interest $2,450

To record the second interest expense and payment, including amortization of bonds discounts.

3. Records:

Debit Cash $76,860

Credit Bonds Liability $70,000

Credit Bonds Premium $6,860

To record the issuance of 7% bonds at premium.

June 30, 2015:

Debit Interest Expense $2,305.80

Debit Amortization of bonds premium $144.20

Credit Cash payment for interest $2,450

To record the first interest expense and payment, including amortization of bonds premium.

December 31, 2015: (not required but showed for emphasis)

Debit Interest Expense $2,301.50

Debit Amortization of Bonds Premium $148.50

Credit Cash payment for interest $2,450

To record the second interest expense and payment, including amortization of bonds premium.

Explanation:

1.  issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.

a) Data and Calculations:

Face value of bonds = $70,000

Issuance value = $70,000

Interest rate on bonds = 7%

Market interest rate = 7%

Period of bonds = 10 years

Payment period = semiannually

Issue date = January 1, 2021

June 30:

Semiannual interest rate = 3.5% (7%/2)

Interest Expense = $2,450 ($70,000 * 3.5%)

Cash payment for interest = $2,450

No amortization of discounts or premiums

December 31:

Semiannual interest rate = 3.5% (7%/2)

Interest Expense = $2,450 ($70,000 * 3.5%)

Cash payment for interest = $2,450

No amortization of discounts or premiums

2. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.

a) Data and Calculations:

Face value of bonds = $70,000

Issuance value = $63,948

Bonds discounts = $6,052 ($70,000 - $63,948)

Interest rate on bonds = 7%

Market interest rate = 8%

Period of bonds = 15 years

Payment period = semiannually

Issue date = January 1, 2015

June 30, 2015:

Semiannual interest rate = 3.5% (7%/2)

Interest Expense = $2,557.92 ($63,948 * 4%)

Amortization of bonds discounts = $107.92 ($2,557.92 - $2,450)

Cash payment for interest = $2,450 ($70,000 * 3.5%)

December 31, 2015:

Semiannual interest rate = 3.5% (7%/2)

Interest Expense = $2,562.24 (($63,948 + 107.92) * 4%)

Amortization of bonds discounts = $112.24 ($2,562.24 - $2,450)

Cash payment for interest = $2,450 ($70,000 * 3.5%)

3. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.

a) Data and Calculations:

Face value of bonds = $70,000

Issuance value = $76,860

Bonds premium = $6,860 ($76,860 - $70,000)

Interest rate on bonds = 7%

Market interest rate = 6%

Period of bonds = 15 years

Payment period = semiannually

Issue date = January 1, 2015

June 30:

Semiannual interest rate = 3.5% (7%/2)

Cash payment for interest = $2,450 ($70,000 * 3.5%)

Interest Expense = $2,305.80 ($76,860 * 3%)

Amortization of bonds premium = $144.20 ($2,450 - $2,305.80)

December 31:

Semiannual interest rate = 3.5% (7%/2)

Cash payment for interest = $2,450 ($70,000 * 3.5%)

Interest Expense = $2,301.50 (($76,860 -144.20) * 3%)

Amortization of bonds premium = $148.50 ($2,450 - $2,301.50)

(Record bond issue and related semiannual interest)

3 0
2 years ago
Which type of tax is paid by businesses on their profits to federal or state governments?
Anna11 [10]

Answer:

Corporate income tax

Explanation:

A corporate income tax (CIT) is levied by federal and state governments on business profits, which are revenues (what a business makes in sales) minus costs (the cost of doing business).

5 0
2 years ago
Previous
densk [106]
OB is false. Hope that answers your question
6 0
2 years ago
waller company does business in two regional segments: north and south. the following annual revenue information was determined
Alla [95]

Answer:

Detaled solution can be seen in the attached diagrams:

8 0
3 years ago
Statistical software is considered a complement in the demand for economists. this means that if the demand for economists incre
dlinn [17]
Increase because the software will become more in demand from the more economists. 
7 0
3 years ago
Other questions:
  • In 2019, Winn, Inc. issued $1 par common stock for $35 per share. No other common stock transactions occurred until July 31, 202
    6·1 answer
  • When a firm practices perfect price​ discrimination, it A. charges each consumer her reservation price. B. captures all the soci
    7·1 answer
  • Cassie is giving a speech about the rising cost of higher education. In her first main point, she talks about how high the cost
    6·1 answer
  • What is the best answer choice
    13·1 answer
  • 9. An arrangement that maintains the power of attorney in the event that the principal becomes
    11·1 answer
  • If the sum of the Ending Balance(s) in the revenue account(s) is greater than the sum of the Ending Balances in the expense acco
    6·1 answer
  • Consider the following cases.
    7·1 answer
  • Elias is a risk-averse investor. David is a less risk-averse investor than Elias. Therefore, Group of answer choices for the sam
    9·1 answer
  • Which of the following statements about personal selling is​ correct?
    8·1 answer
  • Which of the following is a responsibility of the board of directors?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!