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vfiekz [6]
2 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]2 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>

<u />

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If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of
Lerok [7]

Answer:If the firm had sharp seasonal sales patterns, or if it grew rapidly during the year, many ratios would most likely be distorted.

Explanation: Fluctuations in Economics patterns have distorting effects on the ratios of a company or an economy especially if the the seasonal patterns has been consistent for a certain period. THE VALIDITY OF MOST RATIOS ARE SEVERELY AFFECTED BY SHARP CHANGES WHICH MAKES ECONOMIC WATCHERS FEEL THE RATIOS ALREADY ANALYSED ARE NOT VALID.

A consistent flow pattern is desired in an economy and in business Organisation as it helps to give Economic watchers enough confidence in the ratios already existing.

4 0
3 years ago
Expenses ______ retained earnings; therefore, to increase any expense, one would ______ the expense account.
Liula [17]

Expenses decreases retained earnings; therefore, to increase any expense, one would debit the expense account

What does retained earnings mean?

Retained earnings are profits retained in the business  for reinvestment and for expansion purposes, in essence, expenses would reduce the retained earnings, the higher the expenses, the lesser the retained earnings become.

From a double entry point of view, an increase in expenses would be debited to expense account and a decrease is credited instead.

Find out more retained earnings on:brainly.com/question/15175380

#SPJ1

6 0
2 years ago
For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati
soldi70 [24.7K]

Answer:

<u>                                      Assets       =         Liabilities     +       Equity             </u>

1)                                  15,000                          0                       15,000

2)                                  9,000                      9,000                      0

3)                                   1,200                        1,200                     0

4)                                  2,400                        2,400                     0

5)                                 (12,000)                         0                         0

                                     12,000                         0                         0

6)                                   3,000                           0                      3,000    

7)                                   (4,000)                      (4,000)                   0

8)                                   (2,400)                      (2,400)                   0

9)                                        0                           (1,200)                  1,200

10)                                  (1,000)                            0                     (1,000)

TOTALS                       23,200                       5,000                  18,200

5 0
3 years ago
According to​ statistics, a person will devote 33 years to sleeping and watching tv. the number of years sleeping will exceed th
zepelin [54]

Let n represent the number of years watching TV.


Then let sleeping represent as n+19.


Solution for this problem is:

<span>
n+n+19=33</span>

<span>
2n=14</span>

n = 14 divided by 2

<span>n=7

</span>

7 years are spent watching TV while 26 years are spent in sleeping.

 

Other solution:


To figure out how many years you spend sleeping and watching TV, you first need to take the number in total, which is 33, and subtract the number that you will exceed sleeping.33 – 19 = 14. Now that you have the number 14, you can see that 14 divided in 2 = 7. 7 +19 = 26. This leaves you with a remainder of 7 hours watching TV and 26 hours sleeping. 26 is 19 greater than 7. 7 + 26 = 33.

6 0
3 years ago
An activity that relates to the strategy of transferring risk
Alenkasestr [34]

An example is the purchase of insurance policy. Make sure it's safe before doing it, because you never know what can happen! :3

-Mabel <3

7 0
3 years ago
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