In the market for gadgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical dow
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Answer:
ATTACHED file with the bonds schedule
Explanation:
First, we solve for the proceed from the issuance:
PV of the coupon:
C 25,000.000 (500,000 x 10%/2)
time 7 (3 and a half year x 2 payment per year)
rate 0.06 (12% annual / 2)
PV $139,559.5360
PV of maturity:
Maturity 500,000.00
time 7.00
rate 0.06
PV 332,528.56
PV c $139,559.5360
PV m $332,528.5568
Total $472,088.0928
Then we construct the bonds schedule as follows:
procceds 472,088
face value 500,000
discount on bonds payable -27,912
bond rate 0.05
market rate 0.06
ionterest expense: carrying value times market rate:
472,088 x 0.06 = 28,325.29
cash outlay 25,000
amortization 3,325.29
carrying value after first payment:
472,088 + 3,325.29 = 475,413.29
and the process repeat for all periods.
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
