Answer:
FV= $6,616.38
Explanation:
Giving the following information:
Annual cash flow= $500
Number of periods (n)= 8
Interest rate= 14%
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500*[(1.14^8) - 1]} / 0.14
FV= $6,616.38
Answer:
The appropriate journal entries to record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021 are:
White Water journal entries
1-Jan-21
Debit Cash $382,141
Credit Discount on Bonds Payable $27,859
($410,000-$382,141)
Credit Bonds payable $ 410,000
30-Jun
Debit Interest Expenses $ 15,286
($382,141 x 8%/2)
Debit Discount on Bonds Payable $736
Credit Cash $14,350
($410,000 x 7%/2)
31-Dec
Debit Interest Expenses $15,315.08
[($382,141 + 736) x 8%/2]
Credit Discount on Bonds Payable $965.08
($15,315.08-$14,350)
Credit Cash $14,350
($410,000 x 7%/2)
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A crash is a major decrease in stock prices.
A bear market is a general downward trend in stock prices.
A bull market is a general upward trend in stock prices.
