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Helen [10]
3 years ago
6

Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective in

terest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds
Business
1 answer:
trapecia [35]3 years ago
3 0

Answer: 12%

Explanation:

Stated interest rate is used in the calculation of the annual interest payment.

Interest payment = Face value of bonds * Stated interest rate

Annual Interest payment = Semi annual interest payment * 2

= 12,000 * 2

= $24,000

24,000 = 200,000 * Stated interest

Stated interest = 24,000 / 200,000

= 0.12

= 12%

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C) starting a snow cone business

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5 0
3 years ago
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Klamath corporation has insufficient information to find ROE.

Return on equity (ROE) is the degree to of an agency's internet earnings are divided by using its shareholders' equity. ROE is a gauge of a corporation's profitability and how successfully it generates one's income. The better the ROE, the higher an employer is at changing its fairness financing into income.

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Hence since Equity multiplier data is not given.

Learn more about ROE here: brainly.com/question/26849182

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FOR:

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Against

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Here are some basic arguments. You will need to explain these a bit more for your assignment though.

7 0
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