Believing in your capabilities and demonstrating<br> confidence in the tasks that you perform

On January 1 of this year, Thomas Insurance Corporation issued bonds with a face value of $ 4,000,000 and a coupon rate of 9 per

e-lub [12.9K]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c Dr $2199415

To Bonds Payable a/c $2000000

To Premium on the issue of bonds $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

Learn more about Bonds Payable amount here: brainly.com/question/7158291

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6 0

2 years ago

kelsie blames steve for all her shortcomings at work even though he is the hardest working member on the team. in the context of

Dmitriy789 [7]

When someone like Kelsie blames Steve for all her shortcomings at work even though he is the hardest working member on the team, it is an example of political workplace deviance. Therefore, the option B holds true.

<h3>What is the significance of workplace deviance?</h3>

Workplace deviance can be referred to or considered as the tendency of an employee or a member of an organization to intentionally cause a sense of harm to the regular functioning of the organization.

A political deviance is a type of workplace deviance wherein an employee in higher authority starts blaming others for slightest of irregularities in the team.

Therefore, the option B holds true and states regarding the significance of workplace deviance.

Learn more about workplace deviance here:

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The missing options to the question are added below for better reference.

A. group deviance

B. political deviance

C. personal aggression deviance

D. property deviance

7 0

1 year ago

If a currency such as the US$ is traded in a competitive market, a(n) ________ in demand for the US$ ________ the price of t

Lerok [7]

Answer:

If a currency such as the US$ is traded in a competitive market, a(n) increase in demand for the US$ raises the price of the US$ in terms of another currency such as the Japanese Yen (yen).

Explanation:

Basic offer and demand law.

5 0

3 years ago

Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicator

babymother [125]

This illustrates that a moving <span>inflation is directly related to the increasing costs of transactions. The situation perfectly implies that costs will be incurred to ensure efficient and effective flow of processes. This theory also applies to all business strategies of companies.</span>

6 0

3 years ago

Individual marketing across segments creates more total sales than any other type of marketing.

Flura [38]

Answer:

false

Explanation:

7 0

3 years ago

Believing in your capabilities and demonstrating confidence in the tasks that you perform