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Liono4ka [1.6K]
3 years ago
6

On January 1, 2019, a company issued $401,800 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and Decemb

er 31. The issue price was $416,753 based on a 10% market interest rate. The effective-interest method of amortization is used. What is the book value of the bond liability as of June 30, 2019 (to the nearest dollar)
Business
1 answer:
enot [183]3 years ago
6 0

Answer:

The book value of the bond liability as of June 30, 2019 is:

$401,800

Explanation:

The face value of the bond issued is $401,800

The issue price = $416,753

Bond premium = $14,953

This bond premium will be amortized for 10 years semi-annually using the effective-interest method.

However, as of June 30, 2019, no bond has been repaid, since its maturity is after 10 years.  Therefore, the liability on the bond remains the amount of the face value of the bond, which is $401,800.

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stepladder [879]
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well (in the United States, for example, the government releases an annualized GDP estimate for each quarter and also for an entire year).

All the products by U . S company matter where are they products
7 0
3 years ago
Using the continuous compounding equation, if someone invested $5,000 at an interest rate of 3.5%, and someone else invested $5,
UNO [17]

Answer:

Therefore after 16.26 unit of time, both accounts have same balance.

The both account have $8,834.43.

Explanation:

Formula for continuous compounding :

P(t)=P_0e^{rt}

P(t)=  value after t time

P_0= Initial principal

r= rate of interest annually

t=length of time.

Given that, someone invested $5,000 at an interest 3.5% and another one  invested $5,250 at an interest 3.2% .

Let after t year the both accounts have same balance.

For the first case,

P= $5,000, r=3.5%=0.035

P(t)=5000e^{0.035t}

For the second case,

P= $5,250, r=3.5%=0.032

P(t)=5250e^{0.032t}

According to the problem,

5000e^{0.035t}=5250e^{0.032t}

\Rightarrow \frac{e^{0.035t}}{e^{0.032t}}=\frac{5250}{5000}

\Rightarrow e^{0.035t-0.032t}=\frac{21}{20}

\Rightarrow e^{0.003t}=\frac{21}{20}

Taking ln both sides

\Rightarrow lne^{0.003t}=ln(\frac{21}{20})

\Rightarrow 0.003t}=ln(\frac{21}{20})

\Rightarrow t}=\frac{ln(\frac{21}{20})}{0.003}

\Rightarrow t= 16.26

Therefore after 16.26 unit of time, both accounts have same balance.

The account balance on that time is

P(16.26)=5000e^{0.035\times 16.26}

              =$8,834.43

The both account have $8,834.43.

7 0
3 years ago
Why are economic systems needed? Respond to the question below with a minimum of 5 sentences.
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Answer:

Explanation:Since economic resources are scarce, they must be used efficiently. We want to produce as much goods and services as we can, and in the process, produce the goods and services needed the most.  There are five functions an economic system performs in producing goods and services for consumption.

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3 years ago
Shannon Corp. uses the aging method to account for bad debt expense. Shannon determines that a customer account of $10,000 shoul
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Answer:

The write off of the account should include a debit to the allowance for uncollectible accounts, and a credit for bad debt expense:

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Bad Debt Expense                                                  $10,000

Allowance for Uncollectible

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The initial step in creating a business continuity and security response plan is a business impact analysis, which can be used to assemble the business and security responses in order to diminish losses.

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A set of approved high-level arrangements and procedures to enable organizations to accelerate business recovery and reduce the overall impact of the event while allowing critical business functions to resume within specified timeframes. set.

A Business Continuity Plan (BCP) is the development of a strategy document that provides alternative modes of business activity that, if interrupted, could result in significant loss to the business.

Learn more about Business Continuity at

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