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vfiekz [6]
3 years ago
15

Ivanhoe Company issued $1520000 of 6%, 5-year bonds at 95, which pay interest annually. Assuming straight-line amortization, wha

t is the total interest cost of the bonds?a. $636,000.
b. $632,400.
c. $628,800.
d. $639,600.
Business
1 answer:
Mashutka [201]3 years ago
6 0

Answer:

the journal entry to record bond issuance:

Dr Cash 1,444,000

Dr Discount on bonds payable 76,000

    Cr Bonds payable 1,520,000

amortization of discount on bonds payable = $76,000 / 5 = $15,000

coupon payment = $91,200

total interest expense per year = $106,200

total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>

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A corporation issues 2,000 shares of common stock for $32,000. The stock has a stated value of $12 per share. The journal entry
Triss [41]

Answer:

d.$24,000

Explanation:

Given that

Issuance of common stock = $32,000

Number of shares = 2,000 shares

Stated value per share = $12 per share

By considering the above information

The common stock would be credited for

= Number of shares × Stated value per share

= 2,000 shares × $12 per share

= $24,000

Hence, the correct option is d. $24,000

5 0
3 years ago
The stated interest payment, in dollars, made on a bond each period is called the bond's?
kipiarov [429]

The stated interest payment, in dollars, made on a bond each period is called the bond's <u>Coupon.</u>

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4 0
1 year ago
The amount of money deposited 25 years ago at 5% interest that would now provide a perpetual payment of $15,000 per year is clos
Mademuasel [1]
The amount of money needed now to begin the perpetual payments is
P = A/I =15,000÷0.05=300,000

The amount that would need to have been deposited 25 years ago is
P=A÷(1+r)^t
P=300,000÷(1+0.05)^(25)
P=88,590.83
6 0
4 years ago
An improvement in a country's balance of payments means a decrease in its balance of payments deficit, or an increase in its sur
FrozenT [24]

Answer:

Should be D (sometimes harmful).

7 0
3 years ago
What is stock? Explain in your own words.
Roman55 [17]

Answer:Definition: What are stocks? Stocks are securities that represent an ownership share in a company. For companies, issuing stock is a way to raise money to grow and invest in their business. ... When you own stock in a company, you are called a shareholder because you share in the company's profits.

Explanation:

4 0
3 years ago
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