Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
Answer:
117,000 adjusted COGS
Explanation:
![$$Beginning Inventory + Manufactured = Ending Inventory + COGS](https://tex.z-dn.net/?f=%24%24Beginning%20Inventory%20%2B%20Manufactured%20%3D%20Ending%20Inventory%20%2B%20COGS)
35,000 + 136,000 = 48,000 + COGS
COGS = 123,000 before adjustment
overapplied overhead for 6,000
This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS
123,000 - 6,000 = 117,000 adjusted COGS
Answer:
Particulars 2021 2022 2023
Beginning Inventory <u>277</u> <u>253</u> 235
Cost of Goods sold 633 623 <u> </u><u>586</u>
Ending inventory <u> </u><u>253 </u> 235 220
Cost of good available for sale 886 <u>876</u><u> </u> 806
Purchases 640 <u>623 </u> 595
Purchase discounts 20 17 <u>26</u>
Purchase returns 26 32 16
Freight-in 15 34 18
Explanation:
There are few missing values which are calculated using back solving technique. These values are bold and underlined. Playa Company has missing information for its three year accounts.
Available for sale = Beginning inventory + Net Purchases
Cost of Goods Sold = Cost of good available for Sales - Ending inventory
Ending inventory = Cost of Goods available for Sales - Cost of Goods Sold.
Net purchases = Gross purchases + Freight in - Purchase discount - Purchase return
It sounds like Olivia has a franchise since the donut recipe is the parent company secret and Olivia must pay a percentage of her earnings to that same company so that means she is attached to that company and must abide by its regulations.
Answer:
b.market interest rate is higher than the contractual interest rate.
Explanation:
A bond sold at a price below its face value is said to be issued at a discount. An investor pays a price that is lower than they will claim at maturity. For example, a bond with a face value of $ 1000 and trades at $ 950 is trading at a discount.
Bonds are issued at a discount when the prevailing market interest rate is higher than the interest rate the bond is offering. A bond interest rate or coupon rate defines its attractiveness to investors. If the coupon rate is higher than the market rate, the bond will be in great demand. But if the coupon rate is lower than the market, the bond will be less attractive to investors. In such a scenario, the bond is issued at a discount to attract investors.