subject
Business, 06.08.2019 03:20 windmadness5331

Acorporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%. the straight-line method is adopted for the amortization of bond discount or premium. which of the following statements is true?
a. the bonds will be issued at a premium. b. the amount of the annual interest expense is computed at 10% of the bond carrying amount at the beginning of the year. c. the amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity. d. the amount of the annual interest expense gradually decreases over the life of the bonds.

ansver
Answers: 1

Another question on Business

question
Business, 23.06.2019 02:00
You are considering the purchase of one of two machines used in your manufacturing plant. machine 1 has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. machine 2 costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. either machine must be replaced at the end of its life with an equivalent machine. using eac which is the better machine for the firm
Answers: 1
question
Business, 23.06.2019 02:30
The wall street journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. what is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities (to the nearest billion)?
Answers: 3
question
Business, 23.06.2019 12:10
A. calculate the payoff and profit at expiration for the february 190 calls, if you purchase the option at the stated price and at expiration the stock price is $195. b. calculate the payoff and profit at expiration for the february 195 puts, if you purchase the option at the stated price and at expiration the stock price is $195.
Answers: 3
question
Business, 23.06.2019 18:00
A. determine the amount of retained earnings as of january 1, 2018. b. after looking at the amount of retained earnings, the chief executive officer (ceo) wants to pay a $1,000 cash dividend to the stockholders. can the company pay this dividend? c. as of january 1, 2018, what percentage of the assets were acquired from creditors? d. as of january 1, 2018, what percentage of the assets were acquired from investors? e. as of january 1, 2018, what percentage of the assets were acquired from retained earnings? f. create an accounting equation using percentages instead of dollar amounts on the right side of the equation. g. during 2018, carter company earned cash revenue of $1,800, paid cash expenses of $1,200, and paid a cash dividend of $500. (hint: it is to record these events under an accounting equation before preparing the statements.) g-1. prepare an income statement dated december 31, 2018. g-2. prepare a statement of changes in stockholders’ equity dated december 31, 2018. g-3. prepare a balance sheet dated december 31, 2018. g-4. prepare a statement of cash flows dated december 31, 2018. j. what is the balance in the revenue account on january 1, 2019?
Answers: 1
You know the right answer?
Acorporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time...
Questions
question
Mathematics, 18.03.2021 03:10
question
Mathematics, 18.03.2021 03:10
Questions on the website: 13722360