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arsen [322]
2 years ago
6

On May 1, 2020, Course Co. borrowed $16,000 and signed a three-year note bearing interest at 6% per annum. Interest is payable q

uarterly, starting on July 31. What amount should Course report as a liability for accrued interest on its December 31, 2021 balance sheet
Business
1 answer:
butalik [34]2 years ago
5 0

The amount that Course Co. should report as a liability for accrued interest on its December 31, 2021 balance sheet is $240.

<h3>What is accrued interest?</h3>

Accrued interest is an accounting expression that shows a liability for interest payment has been incurred for a loan but the payment has not yet been made.

For Course Co., it incurs accrued interest of $240 every quarter for the three-year note payable. Usually, the accrued interest is paid at the beginning of the next quarter.

<h3>Data and Calculations:</h3>

3-year note payable = $16,000

Rate of interest = 6% per year

Date of loan = May 1, 2020

Interest payment = quarterly or 4 times annually

Interest per quarter = $240 ($16,000 x 6% x 1/4).

Thus, the accrued interest on Course Co.'s December 31, 2021 balance sheet is $240.

Learn more about accrued interest at brainly.com/question/1542335

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Which is not a responsibility of a human resources manager? Choose the answer.
Ivanshal [37]

Answer:

maintaining company employee contact information

8 0
2 years ago
The market price of a security is $70. Its expected rate of return is 12%. The risk-free rate is 7%, and the market risk premium
BartSMP [9]

Answer:So the new   Market price of the security =$49.41

Explanation:

In line with the Capital Asset Pricing Model CAPM, we have that  

Expected return= risk free rate+(betaXmarket risk premium)

12=7+ beta x 7

= 12-7 = beta x 7

beta = 5/7 =0.714

IF  beta doubles with other variables constant

 Expected return= risk free rate+(betaXmarket risk premium)

Beta= 0.714 x2 =1.4285

Expected return = 7 + 1.4285 x 7

Expected return 7+ 9.9995=16.995 ≈17%

Price  =  Perpertual Dividend /Expected retrn

where Current Share price =$70

Dividend = $70 x 12%= $8.4

The new Market price =  Perpetual dividend/Required return

= 8.4/17% =$49.41

So the new Market price =$49.41

4 0
3 years ago
Calculate the current yield of this bond: (Round your answer to the nearest tenth percent.)
Ugo [173]

Answer:

11%

Explanation:

Note: Kindly observe the organized question is attached as picture below

FV = 1000

Coupon amount = 1000*11.22% = 112.2

Close price = 102%

Price of bond in amount = Face value * quoted%

Price of bond in amount = 1000 * 102%

Price of bond in amount = 1020

Current yield formula = Coupon amount/price of bond

Current yield formula = 112.2/1020

Current yield formula = 0.11

Current yield formula = 11%

3 0
3 years ago
A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-s
Pachacha [2.7K]

Answer:

implementation programs, to see if the promotion was handled consistently in the different stores.

Explanation:

The manager should evaluate the processes at the stores to find out if there are specific actions that are being taken by some of the successful stores that the less successful ones are not doing.

Difference in implementation could be the source of the inconsistent performance.

5 0
3 years ago
solver: A dairy company gets milk from two dairies and then blends the milk to get the desired amount of butterfat. Milk from da
Alex777 [14]

Answer:

The company should buy 40 gallons from dairy I and 60 gallons from dairy II.

Explanation:

Let x represent the number of gallons of dairy I milk and y represent the number.

Since the company can buy at most 100 gallons of milk, hence:

x + y ≤ 100     (1)

The company can spend at most $144, hence:

2.4x + 0.8y ≤ 144     (2)

Dairy I can supply at most 50 gallons and dairy II can supply at most 90 gallons. Hence:

0 ≤ x ≤ 50, 0 ≤ y ≤ 90

The graph was plotted using geogebra. The solution to the problem is at:

(10, 90), (40, 60), (50, 30).

The amount of butterfat is: 0.037x + 0.029y, we are to look for the point with the maximum butterfat.

At (10, 90): total butterfat = 0.037(10) + 0.029(90) = 2.98

At (40, 60): total butterfat = 0.037(40) + 0.029(60) = 3.22

At (50, 30): total butterfat = 0.037(50) + 0.029(30) = 2.72

The company should buy 40 gallons from dairy I and 60 gallons from dairy II.

5 0
3 years ago
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