Answer:
Answer is given below.
Explanation:
SOLUTION
a. Calculation of Coupon Payment
Coupon Payment
= Face Value X Coupon Rate
/2
Coupon Payment = 1000*5.5% /2
Coupon Payment = 55 /2= 27.5
Therefore the Coupon Payment is = 27.51
cash flow diagram is attached.
Answer:
$78,000
Explanation:
The computation of interest at year end is shown below:-
Interest at year end = Cash contribution + Income of partnership + Share of partnership liabilities - Cash from the partnership
= $50,000 + $20,000 × 50% + $60,000 × 50% - $12,000
= $90,000 + $10,000 + $30,000 - $12,000
= $78,000
Therefore for computing the partnership interest at year end we simply applied the above formula by considering all the items given in the question
Answer: Composition
Explanation:
The company owes $150,000 and would pay $0.50 on every dollar immediately.
The cash payment required of the company would therefore be:
= Amount of debt in $ - Amount to be paid per dollar.
= 150,000 * 0.5
= $75,000
Timing of payment is immediately.
A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.
The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.
A composition is what happened here as a part of debt was paid to satisfy the full thing.
Answer:
An <u>account</u> is maintained for each financial statement item, whereas a(n) <u>general ledger</u> contains all of the accounts of the company.
Explanation:
Financial statements refers to a statement that that provides formal records of all financial activities and standing of a company or any entity in a structured and easily understandable manner.
For each item of financial statement, an account is kept with the aim of giving a an accurate record of all business activities that are germane to that specific financial statement item.
The purpose of a general ledger is to show individual transactions and resulting account balance of each account of a company as a single collection.
Therefore, an <u>account</u> is maintained for each financial statement item, whereas a(n) <u>general ledger</u> contains all of the accounts of the company.
Answer:
16 times
Explanation:
Calculation to determine what Bonita Corporation's price-earnings ratio is
Price-earnings ratio= ($1550000 -$400000)/387500
Price-earnings ratio=$1,150,000/387500
Price-earnings ratio=2.97
Price-earnings ratio= 48/2.97
Price-earnings ratio=16 times
Therefore Bonita Corporation's price-earnings ratio is 16 times
