A company issued 6,000 shares of stock at $10 each, with a par value of $2.

Park Corporation is planning to issue bonds with a face value of $2,000,000 and a coupon rate of 10 percent. The bonds mature in

Alborosie

Answer:

Cash 2,214,007 debit

bonds payable 2,000,000 credit

premium on B.P 214,007 credit

Explanation:

To know the proceeds for the bonds we will calculate the present value of the coupon payment and the present vlaue of the maturity at market rate:

The coupon payment will be an ordnary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 2,000,000 x 0.05 = 100,000

time: 10 years x 2 payment per year = 20

rate 8.5% annual rate: 0.085/2 = 0.0425 semiannual rate

$100000 \times \frac{1-(1+0.0425)^{-20} }{0.0425} = PV\\$

PV $1,329,436.5808

Whilethe maturity the present value of a lump sum

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 2,000,000.00

time 10 years to maturity

rate 0.085

$\frac{2000000}{(1 + 0.085)^{10} } = PV$

PV 884,570.83

PV coupon payment $1,329,436.5808

PV maturity $884,570.8301

Total $2,214,007.4109

facevalue 2,000,000

premium 214,007

8 0

3 years ago

E7-16 (Transfer of Receivables with Recourse) Beyoncé Corporation factors $175,000 of accounts receivable

alukav5142 [94]

Answer:

a. Transfer or receivables with recourse should be recorded as a sale only when the following conditions are met:

The future economic benefits of the receivables have been surrendered by the transferor.
The transferor's obligation under the recourse provision can be reasonably estimated.
The transfer can require the transfer to repurchase the receivables.

b. attached as a dcoument of excel.

Explanation:

Entry journal corporation for beyonce Corporation in document attached.

Download xlsx

5 0

3 years ago

Getting paid bi weekly how many paychecks do i get , if i lose my job?

Lady bird [3.3K]

If you are getting paid bi weekly it means you get paid every other week, so it depends on how long you have the job.

6 0

4 years ago

Read 2 more answers

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead ra

mixer [17]

Answer: Option (C) is correct.

Explanation:

Given that,

In Dept. A,

Direct labor cost = $60,000

Manufacturing overhead = $90,000

Direct labor-hours = 6,000

Machine-hours = 2,000

In Dept. B,

Direct labor cost = $40,000

Manufacturing overhead = $45,000

Direct labor-hours = 9,000

Machine-hours = 15,000

Predetermined overhead rates in Dept. A = $\frac{Manufacturing\ Overhead}{Direct\ labor\ cost} \times 100$

= $\frac{90,000}{60,000} \times 100$

= 150%

In dept. B = $\frac{Manufacturing\ Overhead}{Machine\ Hour}$

= $\frac{45,000}{15,000}$

= $3

8 0

3 years ago

The NEC® arose as a consensus of more than 1200 individuals primarily to ____.

labwork [276]

NEC arose to:

d.standardize equipment use as a marketing tool

Explanation:

NEC Corporation is a multinational IT and Electronics firm that is based out of Japan.

It was started in the 60s as Nippon Electric company ltd. but it re branded itself to name NEC in 1983.

It is responsible for the standardization of equipment as their USP and their prime marketing tool and made it a standard industry practice to do so as of now.

Their impact on the whole industry has been immense.

7 0

3 years ago