1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
densk [106]
3 years ago
9

Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on Janua

ry 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Business
1 answer:
sesenic [268]3 years ago
4 0

Answer:

The first interest payment:

Dr interest  expense   $144,000

Cr cash                                         $144,000

The issuance of the remaining bonds"

Dr cash           $400,000

Cr bonds payable            $400,000

Explanation:

The first  interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.

The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.

You might be interested in
Creditors often include several requirements in a mortgage contract in order to protect their interests. In order to ensure that
muminat

Answer:

prepayment penalty, maintain, insurance, mortgage

Explanation:

Prepayment penalty clause relates to the situation that the borrower shall not prepay the borrowed amount as to the creditor it will be loss in the form of interest, thus, it do not want that the borrower shall collect from any other source.

The property should not loose its value, or the value shall not be degraded as that will result in loss, as when the borrower fails to repay the loan, creditor has the right to sell it, if it will not be maintained the value will degrade.

Insurance is required so that same as in above mentioned point that the value is not lost, and then the value of loan is fully recoverable.

If the value of loan exceeds 80% of value of property there shall be mortgage as the lender ensures his payment and no failure shall be there.

5 0
3 years ago
You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
deff fn [24]

Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

3 0
3 years ago
Purchasing power parity (ppp) is considered an __________ measurement poverty levels
Nastasia [14]

Purchasing power parity (ppp) is considered an objective measurement poverty levels.

Purchasing power parity:

  • By removing the variations in price levels between nations, purchasing power parities (PPPs) are rates of currency translation that aim to equalize the purchasing power of various currencies.
  • monetary and developmental. Timothy Callen the rate at which the equivalent amount of goods and services might be purchased in one country using the currency of the other at a certain exchange rate.
  • By taking the geometric mean of the pricing relationships between each pair of economies for the two varieties of rice, the basic-heading PPP for each pair of economies may be calculated directly. This comparison is bilateral.
  • China, despite still being a developing country, is thought to have the greatest PPP in the entire world. This is due to the country's economy being the largest in the world, despite the fact that the bulk of its population earn extremely low wages.

Learn more about Purchasing power parity here

brainly.com/question/14635386

#SPJ4

7 0
1 year ago
Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unempl
Thepotemich [5.8K]
<h3>The unemployment created by introduction of automatic elevators would be considered as structural </h3>

Explanation:

Structural unemployment is a longer-lasting type of unemployment that is induced by structural economic changes and aggravated by external influences like technology, rivalry, and government policy.

Structural unemployment will last for decades and typically needs to reverse a dramatic shift. Technology continues to intensify systemic unemployment, marginalize certain workers and make certain occupations redundant, such as manufacturing. Structural unemployment can be long-term and difficult to address as it needs either displacement or retraining.

3 0
3 years ago
Scenario
alekssr [168]

Answer:

Create a guide that security personnel will use that includes procedures for implementing an access control change.

Explanation:

The procedure guide must contain the steps Always Fresh security personnel should take to evaluate and

implement an access control change. You can assume any change requests you receive are approved.

Ensure that your procedures include the following:

▪ Status or setting prior to any change

▪ Reason for the change

▪ Change to implement

▪ Scope of the change

▪ Impact of the change

▪ Status or setting after the change

▪ Process to evaluate the change

Required Resources

▪ Internet access

▪ Course textbook

Submission Requirements

▪ Format: Microsoft Word (or compatible)

▪ Font: Arial, size 12, double-space

▪ Citation Style: Follow your school’s preferred style guide

Self-Assessment Checklist

▪ I created a procedure guide that provides clear instructions that anyone with a basic technical

knowledge base can follow.

▪ I created a well-developed and formatted procedure guide with proper grammar, spelling, and

punctuation.

▪ I followed the submission guidelines.

7 0
2 years ago
Other questions:
  • Dane is a stockholder in smallworld, inc., a c corporation that manufactures amusement park rides. the company recently lost a m
    14·1 answer
  • Irene enjoys problem solving and figuring out how things work. In her workplace, when there are technical issues, many of her co
    6·2 answers
  • A web designer quits a project where she was paid $50,000 on completion of the project. She starts a new company with sales reve
    7·1 answer
  • Period costs include
    14·1 answer
  • 1. Which of the following is not characteristic of a corporation?
    10·2 answers
  • Question 37Gray Company uses the periodic inventory system to account for inventories. Information related to Gray Company's inv
    12·1 answer
  • _______ is a political strategy for managers to exercise power unobtrusively. Controlling uncertainty Being irreplaceable Genera
    7·1 answer
  • What’s the best app to save your pictures and photos that’s unlimited with no pay I know Flickr, Dropbox is one of them but they
    6·2 answers
  • Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1
    6·2 answers
  • If Joey joins the military, he can learn different skills that could be useful in his later career.
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!