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
Liono4ka [1.6K]
2 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]2 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.

You might be interested in
The income statement of Kimbrough Community Clinic for the year ended December 31, 2017, is provided below.
mixer [17]

Answer:

0.47

Explanation:

Debt service coverage ratio = Net Operating Income ÷ Total Debt Service

where,

Net Operating Income = Revenue - Certain Operating Expenses

Total Debt Service = Current Debt Obligations

therefore,

debt service coverage ratio = $32,000 ÷ $68,000 = 0.47

5 0
2 years ago
Incident Reports, such as Situation Reports and Status Reports enhance situational awareness and ensure that personnel can acces
Irina-Kira [14]

Answer:

The correct answer is True.

Explanation:

An incident report is a tool that records any event that could cause injury to people or damage to company assets. It should include almost accidents, damage to property and equipment, health and safety issues, safety violations and misconduct in the workplace.

Incident reports could be used to discover potential risks and hazards in the workplace and to raise awareness about these problems. That is why it is important to add an analysis of the causes and effects of any incident to avoid similar situations in the future.

7 0
3 years ago
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.
Kamila [148]

Answer:

Explanation:

1. No effect. The GDP is the total value of goods and services produced in a country in a specific period of time. If we are talking about US GDP, the purchase of a Belgium chocolate would not affect it.

2. Effect on investment. In spite Honda is a Japanese enterprise, it is producing in the United States. The GDP, is the value of all goods and services produced in country.

3. Effect on investment. Purchase of new housing affects the count of investment (not consume).

4. Affects consume. Because the air-conditioner was produced in the US.

5. Affects consume. They paid an accountant for a service produced in the U.S

6. Effect in government expenses. The salary for these workers is paid by the government, specifically the subdivision of New York.

7. Effect in government expenses. These economic benefits are paid by the government and no other private entities.

4 0
3 years ago
A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one
g100num [7]

Answer:

B) 1.92%

Explanation:

For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment

Given that,  

Present value = $104

Future value or Face value = $100

PMT = $100 × 6% = $6

NPER = 1

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative        

After applying the above formula, the yield to maturity is 1.92%  

7 0
3 years ago
I need some help with this homework.
Eddi Din [679]

Answer:

I can help you with this homework just

6 0
3 years ago
Other questions:
  • The biweekly taxable wages for the employees of rite shop follow. Compute the FICA taxes for each employee and the employers FIC
    10·1 answer
  • A study published in the Journal of the American Medical Association showed that postal workers who tested positive for drug use
    6·1 answer
  • List the steps in the PACED decision-making process.
    9·1 answer
  • The campus barber faces stiff competition from the large number of shops that surround the campus area, and for all practical pu
    12·1 answer
  • When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at?
    12·2 answers
  • How are profits and losses calculated? What is the difference between economic profit and accounting profit?
    13·1 answer
  • A researcher plans to evaluate a new reading program by measuring students’ reading skill before and after the program begins. I
    11·1 answer
  • calculator solutionvChang is investing $2,500 today and will do so at the beginning of each of the next six years for a total of
    5·1 answer
  • explain the social and psychological factors that influence the buying patterns of customers in business
    8·1 answer
  • What factors are used in the rule-of-thumb methods to determine the communication budget?.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!