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
kykrilka [37]
2 years ago
13

On July 1, 2019, Stacy Company signed a $140,000, one-year, 6 percent note payable. The principal and interest will be paid on J

une 30, 2020. How much interest expense should be reported on the income statement for the year ended December 31, 2019
Business
1 answer:
Ahat [919]2 years ago
8 0

Answer:

Stacy Company

The amount of interest expense that should be reported on the income statement for the year ended December 31, 2019 is:

= $4,200.

Explanation:

a) Data and Calculations:

6% Notes Payable = $140,000

Date of issuance = July 1, 2019

Interest rate per annum = 6%

Total interest expense for the one year = $8,400 ($140,000 * 6%)

Interest expense for the half-year = $4,200 ($140,000 * 6% * 1/2)

b) Therefore, the cash payment on June 30, 2020 will amount to $148,400 ($140,000 + $8,400)

You might be interested in
Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. Th
N76 [4]

Answer:

e. None of these.

3 0
2 years ago
Nora contracts to work for ABC Investments during June for $2,500. On May 31, ABC cancels the contract. Nora refuses to accept a
kap26 [50]

Answer:

c. $500

Explanation:

A contract is an agreement by two or more parties to perform a.certain activity within a given time.

When contract are breached, the beneficiary has the right to gain back the amount promised.

If the beneficiary can get another option, the other party is obligated to pay the balance.

On this instance Nora had the chance to get a new job at $2,000 salary the balance is $2,500 - $2,000= $500. Since she rejected the job she is responsible for that loss.

However ABC is still liable to pay the balance of $500

6 0
3 years ago
Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payments, 13.5 years to maturity, and
Snezhnost [94]

Answer:

Annual Coupon rate =  66.56990711 / 1000 = 0.06656990711 or 6.656990711% rounded off to 6.66%

Option B is the correct answer

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = C

Total periods (n) = 13.5 * 2 = 27

r or YTM = 0.064 * 6/12 = 0.032 or 3.2%

The formula to calculate the price of the bonds today is attached.

We will first calculate the value of semi coupon payment  made by the bond.

1023 = C * [( 1 - (1+0.032)^-27) / 0.032]  + 1000 / (1+0.032)^27

1023 = C * 17.8994796  +  427.2166529

1023 -  427.2166529  =  C * 17.8994796

595.7833471 / 17.8994796  =  C

C = 33.28495355 rounded off to 33.28

The annual coupon payment will be = 33.28495355 * 2 = 66.56990711 rounded off to 66.57

Annual Coupon rate =  66.56990711 / 1000 = 0.06656990711 or 6.656990711% rounded off to 6.66%

4 0
2 years ago
What is a vital point for most marketers
IgorLugansk [536]
The <span>demographic segmentation. </span>
5 0
2 years ago
In her presentation on improving employee morale, Jillian makes this statement: So far, you've heard only about the problems we
devlian [24]

Answer: Switching Directions

Explanation:

Jillian made use of the Switching direction verbal signpost during her presentation.

A verbal signpost is a statement made during a public speech, that gets the audience attention and helps them to know the direction in which the speech is going.

7 0
3 years ago
Other questions:
  • You transferred $6,456 from your checking account to your savings account. The balance in savings was $7,870 before the transfer
    13·2 answers
  • The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates
    9·1 answer
  • Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggrega
    8·1 answer
  • In the context of fixed-quantity systems,__________is defined as the on-hand quantity (oh) plus any orders placed but which have
    9·1 answer
  • On May 9, 2013, Calvin acquired 250 shares of stock in Aero Corporation, a new startup company, for $68,750. Calvin acquired the
    7·1 answer
  • A student was asked to draw an aggregate demand and aggregate supply graphLOADING... to illustrate the effect of an increase in
    12·2 answers
  • What is gross pay?
    9·1 answer
  • to insure goods to send them overseas it costs the exporter 5/2% of the value of the goods. if the goods are valued at 16.400$,
    5·1 answer
  • justify your answer by explaining how the weighted average cost of capital for the company would change if clark uses bank debt
    15·1 answer
  • Bed &amp; Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution fo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!