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Fudgin [204]
3 years ago
11

g On January 1, 2020, Fotso Corporation issued 5 year bonds with a face value of $200,000 and coupon rate of 12% interest, payab

le semiannually on June 30 and December 31. The market rate of interest at the time of issuance was 14%, and the bonds were issued at a discount of $14,047. Using the effective-interest method, the amount of discount that should be amortized on December 31, 2020, is
Business
1 answer:
kenny6666 [7]3 years ago
6 0

Answer:

amortization of bond discount December 31 = $1,087.88

Explanation:

bonds' issue price = $200,000 - $14,047 = $185,953

amortization of bond discount June 30 = ($185,953 x 7%) - ($200,000 x 6%) = $1,016.71

amortization of bond discount December 31 = ($186,969.71 x 7%) - ($200,000 x 6%) = $1,087.88

total interest expense Decmber 31 = $13,087.88

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Jameson manages a well-known cell phone company. This company has been voted as having the best cell-phone service. Consumers ap
jek_recluse [69]

Answer:

The correct answer is c. do to satisfy customers

Explanation:

Creating a customer-centered culture is mandatory for any business. Customer care has never been more important. Today, a dissatisfied customer has the ability to share their opinions on social networks or the Internet and negatively affect our business.

Many businesses are failing to provide a correct experience. Creating a satisfactory experience in our clients, through cultivating and helping to develop a relationship with our company, is an opportunity not insignificant. Creating these types of relationships can help positive opinions have greater reach and diffusion.

4 0
3 years ago
Why do some companies use travel agents to set up their travel arrangements?
Sergio [31]
It is more convenient to use travel agents to set up their travel arrangements due to busy and conflicting schedules of business people. Agents will also do everything for you to meet your travel needs. Travel agents know more than you do. They also have access to benefits you can't get otherwise. After you planned everything, they provide a safety net for your trip that you wont simply won't get by booking yourself or buying insurance.
5 0
4 years ago
Premium on Bonds Payable_________.
Tatiana [17]

Answer:

c. is considered to be a reduction in the cost of borrowing.

Explanation:

The premium on bond payable arise when the bond payable is issued more than the face value. It is a liability account consist of the credit balance that is presented on the liability side of the balance sheet

Moreover, it is deducted in the borrowing cost and amortized as an interest expense to the bonds life. It is added to the bond payable

Hence, the correct answer is c.

3 0
3 years ago
The value-added method involves taking the cost of intermediate outputs (i.e., outputs that will, in turn, be used in the produc
Brut [27]

Answer:

Value Added = Value of Output - Intermediate Consumption = Final Goods    .                                                                                                       Value

Explanation:

This can be explained with an example:

A produces flour & sells it to Grocer for Rs 100. Grocer produces Wheat & sells it to Baker for Rs 150. Baker produces bread & sells it to Consumers for Rs 200.

Value of Final Product (Used by end consumers) i.e Bread = Rs 200.

However if considering total Value Of Output including all value added at each stage = 100 + 150 + 200 = 450. This is Overestimated value of Final product Bread, because of 'Double Counting' - Grocer's wheat includes the intermediate good (good purchased for further resale/reprocessing) value of flour and Baker's bread includes value of Wheat & flour intermediate products both.

This problem can be solved by: Calculating Value Added (by subtracting intermediate consumption) at each stage & then summing it to get the Final good value.

In this case: Farmer's Value Added = VO - IC = Flour Value - 0 = 100 .

Grocer's Value Added = VO - IC = Wheat - Flour Value = 150 - 100 = 50

Baker's Value Added = VO - IC = Bread - Wheat Value = 200 - 150 = 50

Adding value added by all these 3 we get , 150 + 50 + 50 = 200 i.e equal to final good bread value 200.

8 0
3 years ago
Pat and Gerard met each other for the first time in a business meeting. As a conversation starter, they shared factual and stati
noname [10]

Answer:

report talk

Explanation:

The conversation between Pat and Gerard is a classic example of report talk, where the individuals included in the conversation simply state facts about various things, giving little to no emotions into what they talk about.

This conversation ritual is opposed to rapport talk, where emotions and empathy are infused in the conversation.

5 0
3 years ago
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