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Arlecino [84]
3 years ago
5

Kimble Electronics issued its 6%, 20-year bonds payable at a price of $855,000 (face value is $900,000). The company uses the st

raight-line amortization method for the bond discount or premium. Interest expense for the first year is:
Business
1 answer:
il63 [147K]3 years ago
6 0

Interest expense for the first year is: $56,250

Solution:

Kimble Electronics issued = 6%, 20-year bonds payable

The corporation follows the straight-line amortization approach for the discount or premium on debt.

$900,000 - $855,000= $45,000

$45,000/20 years= $2,250 per year

$900,000 * 0.06 = $54,000

$2,250 + $54,000 = $56,250 interest expense.

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Which Finance Career Pathways involve money, assets, or liabilities? Check all that apply.
Oksi-84 [34.3K]

Answer:

Banking and Related Services

Insurance Services

Financial and Investment Planning

Business Financial Management

Explanation:

Retailers can be categorized as service retailers or merchandise retailers. Service retailers sell services such as legal, health, delivery services, parking, and many others. Merchandise retailers deal with products/ tangible items. They buy in bulk from manufactures or wholesalers and sell to end consumers.  Retail related services deal more with sales, cash, and credit, unlike the other carriers in the list that deal with assets, liabilities, and money.

4 0
3 years ago
Read 2 more answers
A bond issued by the U.S. Treasury with a maturity of 90 days is sold on the
defon

Answer:

o money

Explanation:

as the exchange rates can dramatically change in very little time

6 0
2 years ago
Read 2 more answers
Gni ppp, or gross national income divided by purchasing power parity, helps measure:
Alchen [17]
<span>GNI PPP, or gross national income divided by purchasing power parity, helps measure the standard of living in a country. GNI PPP is gross national income converted to international dollars using purchasing power parity rates. An international dollar has same purchase power over GNI as U.S. dollar has in the United States.</span>
5 0
3 years ago
Typical Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2017, when the tax rate was 40%. T
Alex_Xolod [135]

Answer:

Income tax expense (Balancing figure) $13,200,000  

          To Deferred tax liability (8% × $15,000,000)  $1,200,000

          To Income tax payable ($30,000,000 × 40%)  $12,000,000

(Being the income tax expense is recorded)

Explanation:

The compound journal entry is shown below:

Income tax expense (Balancing figure) $13,200,000  

          To Deferred tax liability (8% × $15,000,000)  $1,200,000

          To Income tax payable ($30,000,000 × 40%)  $12,000,000

(Being the income tax expense is recorded)

For recording this, we debited the income tax expense as it increased the expenses and at the same time it also increased the liabilities i.e deferred tax liability and income tax payable so it would be credited

6 0
3 years ago
Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $1
brilliants [131]

Answer:

  1. 1200 BEPunits
  2. $14,400 BEP dollars
  3. second scenario
  •      1200 BEPunits
  • $14,400 BEP dollars

Explanation:

\frac{Fixed Cost}{contribution margin}  = BEPunits

contribution margin = Sales - Variable Cost

12 - 10 = 2 contribution margin

fixed expenses = 2,400

BEP = 2,400/2 = 1,200 units

<u>Resuming: </u>each unit contributes with $2 dollars therefore it needs to sale  1,200 untis to pay the fixed cost.

units x sales price = sales revenue

1,200 x 12 =  14,400 BEP in Dollars

Also it is posible to get this by using contribution margin ratio

in the BEP formula:

\frac{Fixed Cost}{Contribution Margin Ratio} = BEPdollars

contribution margin/sales price = 2/12 = 1/6

fixed cost /contribution margin ratio = 2,400/(1/6) = 14,400

Scenario were fixed cost increase:

increase in fixed/contribution margin + previous BEP = BEPunits

increase in fixed/contribution margin ratio + previous BEP = BEPdollars

600 fixed cost /contribution margin = 600/2 = 300 more units to our prevous 1,200 total of 1,500

600 fixed cost /contribution margin ratio = 600/(1/6) = $3,600 more sales revenue to our prevous 14,400 total of 18,000

3 0
3 years ago
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