On June 30, 2017, Cullumber Company issued $5,200,000 face value of 13%, 20-year bonds at $5,591,193, a yield of 12%. Cullumber uses the effective-interest method to amortize bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. A. Prepare the journal entries to record the following transactions. The issuance of the bonds on June 30, 2012.The payment of interest and the amortization of the premium on December 31, 2012.The payment of interest and the amortization of the premium on June 30, 2013.The payment of interest and the amortization of the premium on December 31, 2013.B. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2013, balance sheet. C. Provide the answers to the following questions.1. What amount of interest expense is reported for 2013?2. Will the Interest Expense reported in 2013 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?3. Determine the total cost of borrowing over the life of the bond.4. Will the total Interest Expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used?

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Jackson is preparing for his hearing before the federal communications commission (fcc) involving a complaint that was filed against him by the fcc regarding the interruption of radio frequency. the order to "cease and desist" using the radio frequency has had a detrimental impact on his business. once the administrative law judge prepares his or her initial order, jackson has no further options. no, jackson can request that the matter be reviewed by an agency board or commission. yes, once the initial order is presented, it's only a matter of time before the order becomes final.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld