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Elden [556K]
3 years ago
8

On January 1, 2017, Banek Inc. issued $350,000 of 8%, 9-year bonds for $309,086, which implies a market (yield) rate of 10%. Sem

iannual interest is payable on June 30 and December 31 of each year. a.Show computations to confirm the bond issue price. b.Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual inter- est payment and discount amortization on June 30, 2017, and (3) semiannual interest payment and discount amortization on December 31, 2017.
Business
1 answer:
Kamila [148]3 years ago
5 0
I’m depressed :((((
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On May 1, 20X2, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 20X12. The bonds were issued
TiliK225 [7]

Answer:

B) 60,100

Explanation:

Since months have passed between the bond issuance and October 31. The amortization of the premium received depends on the amount of interest recognized. When the effective interest method is used, interest expense is based on the yield rate and the beginning book value.

interest expense = ($1,000,000 + $62,000) x 10% x 6/12 = $53,100

interest payable = $1,000,000 x 11% x 6/12 = $55,000

the difference (bond premium) = $55,000 - $53,100 = $1,900

unamortized bond premium = $62,000 - $1,900 = $60,100

4 0
3 years ago
A writer, an illustrator, a publisher and an agent would form a ______. a. functional team b. cross-functional team c. managemen
tresset_1 [31]

A Cross-functional team will be formed when a writer, an illustrator, a publisher and an agent work together.

<h3>What is a Cross-functional team?</h3>

This means the groups of people from various departments in an organization that work together to achieve a common goal.

Hence, when writer, an illustrator, a publisher and an agent work together, this is known as a Cross-functional team.

Therefore, the Option B is correct.

Read more about Cross functional team

<em>brainly.com/question/7628770</em>

6 0
2 years ago
Too much taxation an overuse of regulation leads to
Naddik [55]
Every things is to high
3 0
3 years ago
Why does the​ self-correcting mechanism stop working when the policy rate hits the zero lower​ bound?
Alex73 [517]

The available options

A. The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower​ bound, and this increase depresses planned spending and further widens the output gap.

B. The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease depresses saving and investment and therefore further widens the output gap.

C. The​ self-correcting mechanism stops working because the rising inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease depresses planned spending and further widens the output gap.

D. The​ self-correcting mechanism stops working because the rising inflation produced by a positive output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease enhances planned spending and further widens the output gap.

Answer:

A

Explanation:

For a given situation in the question above the correct answer is Option A, which is: The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower​ bound, and this increase depresses planned spending and further widens the output gap.

4 0
3 years ago
Which of the following statements is false?
Brilliant_brown [7]

Answer:

The false statement is letter "C": Stratification of the population into several homogeneous sub-populations generally reduces audit efficiency.

Explanation:

Stratification is the method of grouping a population into subpopulations, with each group of units having similar characteristics. The efficiency of audits can be increased if the auditor stratifies a population by grouping it into different sub-populations since the variability of items will be reduced.

8 0
3 years ago
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