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Serggg [28]
3 years ago
9

On January 2, 20X4, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, 20X24. The bonds were issued

for $469,500 to yield 10%. Interest is payable annually on December 31. West uses the interest method of amortizing bond discount. In its June 30, 20X4, balance sheet, what amount should West report as bonds payable?
Business
1 answer:
ehidna [41]3 years ago
5 0

Answer:

$470,425

Explanation:

The computation of the amount reported as bond payable is shown below:

<u>Particulars  Interest at 4.5% Interest at 5%  Amortized  UnAmortized  CV</u>

<u>                                                                             discount     discount </u>

Starting value                                                                        $30,500  $469,500    

                                                              ($500,000 - $469,500)  

June 30         $22,500         $23,475                $975        $29,525  $470,425

  ($500,000 × 4.5%)            ($469500 × 5%)

The six months rate would be the half of the rates given in the question

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What is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less? Multiple Cho
Ksenya-84 [330]

Answer:

Commercial paper

Explanation:

Commercial paper is a term in business or economics that describes money-market security issued by corporation, which is considered unsecured, so as to obtain funds to meet short-term debt or obligation, such as financing of payroll, and inventories.

It is supported only by issuing bank or company promise to pay the face amount on the maturity date often 270 days or less, as specified on the note.

Hence, COMMERCIAL PAPER is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less.

4 0
3 years ago
Hilton Hotels has diversified its lodging brands by adding Curio Collection, Tapestry Collection, and Canopy by Hilton, properti
Aloiza [94]

Answer:

The correct answer is D

Explanation:

Diversified is the term which is described as diverse or the varied. The hotels wants to have the different or varied brands so that the properties offer the personalized services, stylish and distinctive decors, which attract the professionals seeking the different alternatives.

So, in order to enhance the differentiation of the brands, the hotel should seek out or reach out the inputs which are of low quality.

6 0
3 years ago
Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100
olasank [31]

Answer:

Ramon’s basis in the stock he receives in his corporation is $84,000

Explanation:

The computation of Ramon’s basis in the stock received in his corporation would be $84,000 as this amount reflect the adjusted basis of the assets transferred to the corporation.  

These assets include inventory, building, and land. So, the total amount of the total assets would be received i.e based on an adjusted basis, not the fair market value  

6 0
3 years ago
State and city governments have promoted facilities where new businesses can open up shop and share common services such as secr
denis-greek [22]

Answer:

Incubators

Explanation:

In north american context the incubators refers to small places for business provided on low rent.

Basically in the given context, the space for new shops for businesses is given by state and city government, this clearly states that because of involvement of government the prices of such place would be really low as compare to private rental spaces.

This provides that because of this facility incubators will grow.

6 0
3 years ago
"Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil
Alekssandra [29.7K]

Answer:

The margin for Alyeska Services Company: 29.48

The turnover for Alyeska Services Company: 49.01

The return on investment for Alyeska Services Company: 14.45

Explanation:

Please find the below for detailed explanation and calculations:

We have the formula for calculating the ratios as require in the question: Margin = Net operating income/ Sales ; Turnover = Sales/Average operating assets; Return on investment = Net operating income/ Average operating assets.

Thus, we have:

The margin for Alyeska Services Company is calculated as Net operating income/ Sales or 5,100,000/17,300,000 = 29.48%;

The turnover for Alyeska Services Company is calculated as Sales/Average operating assets or 17,300,000/35,300,000 = 49.01%;

The return on investment for Alyeska Services Company is calculated as Net operating income/ Average operating assets: 5,100,000/35,300,000 = 14.45%.

Hope this is helpful to you.

6 0
3 years ago
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