Answer:
The cash received from bond issuance is journalized as follows:
Dr Cash $285,600
Cr Bonds payable $280,000
Cr Premium on Bonds payable $5,600
The June 30 and 31 December Year 1 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
31 December
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
The June 30 and 31 December Year 2 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
31 December
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
Explanation:
The amount realized from the bond is calculated thus:
$280,000*102%=$285,600
Premium on bond=Bonds proceeds-par value
=$285,600-$280,000
=$5,600
Semi-annual amortization of bond premium=$5,600/5*6/12
=$560
Semi-annual interest payment=$280,000*6%*6/12
=$8,400
Answer:
$1,100
Explanation:
EBIT = Sales - Costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Net income = EBIT - Tax @ 40%
= $1,500 - $600
= $900
Operating cash flow = Net income + Depreciation
= $900 + $1,500
= $2,400
Free cash flows:
= Operating cash flow - Increase in working capital - Capital expenditure
= $2,400 - $500 - $800
= $1,100
Compared to stocks, mutual funds offer investors a relatively limited range of choices - false
Answer is False
What are mutual funds?
A mutual fund is a business enterprise that swimming pools money from many buyers and invests the cash in securities which include stocks, bonds, and quick-term debt. The blended holdings of the mutual fund are known as its portfolio. buyers purchase stocks in mutual finances.
Are mutual funds safe?
Mutual funds are in large part a secure investment, seen as being an excellent manner for investors to diversify with minimum hazard. but there are circumstances in which a mutual fund isn't always a great choice for a marketplace player, especially on the subject of costs.
What's mutual funds and types?
A mutual fund is a basket of numerous investments, together with shares, bonds, and cash. There are three primary styles of mutual funds: equity finances, constant-profits budget, and cash market budget. every of those sorts has a distinctive risk stage associated with it. There are two predominant blessings to mutual funds.
Can I get monthly income from mutual funds?
Sure, you may get month-to-month earnings from mutual funds. The first-class way for that is to opt for SWP or Systematic Withdrawal Plan in a mutual fund scheme. via SWP, you could withdraw a set quantity on a monthly or quarterly foundation from the investment you've got made in any mutual fund scheme.
Learn more about Mutual funds here:- brainly.com/question/4521829
#SPJ4