Sports Corp has 11.7 million shares of common stock outstanding, 6.7 million shares of preferred stock outstanding, and 2.7 mill
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Answer:
Explanation:
If r is the number of successes out of n trials , then the sample proportion of success =
For binomial experiment , if the population probability of success p on a single trial is not given , then the best point estimate for probability of success p on a single trial is the sample proportion of successes.
i.e. a point estimate for the probability of success p on a single trial :
Hence, a point estimate for the probability of success p on a single trial =
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) Semiannually Rate of interest = 11% ÷ 2 = 5.50% = 0.055
Number of years (half yearly) = 4 × 2 = 8 years
PVIF Value = 1 ÷ (1 + Interest Rate)^Number of years
=1 ÷ (1 + 0.055)^8
= 1 ÷ 1.5347
= 0.65160
PVIFA Value = [1 -1 ÷ (1 + Interest Rate)^Number of years ÷ Interest Rate
= [1 - 1 ÷ (1 + 0.055)^8] ÷ 0.055
= [1 - 0.65160] ÷ 0.055
= 6.33457
Particular PV table value Multiply Amount ($) PV value
Principle value 0.65160 × 640,000 $417,024
Annually interest Value 6.33 × 32,000 $202,706
($640,000 × 6 ÷ 12 × 10%)
Present Bond’s Price $619,730
2).
Journal Entry
On Jan.1,2021
Cash A/c Dr. $619,730
Discounts on bond payable A/c Dr. $20,270
To Bond payable A/c $640,000
(Being bond issued at discount is recorded)
3. The amortizable schedule is presented on the attachment below
4).
Journal Entry
June 30,2021
Interest expense A/c Dr. $34,085
To Cash A/c $32,000
To Discount on bond payable A/c $2,085
(Being interest expenses is recorded)
5) On December 31,2021 Amount of bonds reported = $624,015
6). Interest expenses reported in income statement
= $34,085 + $34,200
= $68,285
7).
Journal Entry
On Dec. 31,2024
Interest expense A/c Dr. $35,032
To Cash A/c $32,000
To Discount on bond payable A/c $3,032
(Being interest expense is recorded)
On Dec.31,2024
Bond payable A/c Dr. $640,000
To Cash A/c $640,000
(Being interest expense is recorded)
