I got 100k for the balance of the investment when I did the math so how is it 98k?

On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 3

Tasya [4]

Answer:

a) Cash received = $183,350

b) Interest expense = $12,730

c) Carrying value = $186,010

Explanation:

As per the data given in the question,

a) Face value of bond = $190,000

Issued at =0.965

Cash received = $190,000 × 0.965

= $183,350

b) Discount on bonds payable = $190,000 - $183,350

=$6,650

Annual amortization of discount on bonds payable =$6,650÷5

= $1,330

Cash interest = $190,000×0.60

= $11,400

Interest expenses = $11,400+$1,330

= $12,730

c)

carrying value = $183,350 + ($1,330 × 2)

= $186,010

6 0

3 years ago

Planned investment spending is _____ the interest rate because fewer projects are profitable at higher interest rates. greater t

Lapatulllka [165]

The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.

<h3>How are investment spending and interest rates related?</h3>

Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.

If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.

Find out more on interest rates at brainly.com/question/26540958.

5 0

3 years ago

A standard hour incentive plan is likely to be successful if :_________

Y_Kistochka [10]

Answer: employees want the extra money more than they want to work at a pace that feels comfortable

Explanation:

A standard hour plan is based on the units that employees produce and once that unit is met, a set hourly wage is paid to the employees and an incentive can be given once the standard number of hours is exceeded.

It should be noted that a standard hour incentive plan is likely to be successful if employees want the extra money more than they want to work at a pace that feels comfortable. This will motivate them to work for extra hours since they want the extra money.

3 0

3 years ago

The __ approach takes into account both the magnitude and timing of cash flows over the entire life of a project in measuring it

Nikolay [14]

Answer: d. internal rate of return

Explanation:

The Internal Rate of Return can be a very useful method for measuring the viability of a product because it takes into account the magnitude and timing of cashflows when it discounts it to the current period to find out if it will lead to a higher NPV than zero.

The other methods have their limitation. The payback period does not take into account the entire lifetime but rather stops as soon as the project pays back and the other two do not take into account the timing of the cashflows.

4 0

3 years ago

XYZ Law Firm provided services for a cllent for $5,000 cash and provided service for another for $10,000 that will pay for the s

Norma-Jean [14]

Answer: The income statement should reflect $15,000.

Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.

4 0

3 years ago