answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ladessa [460]
2 years ago
6

On January 1, 2020, Cougar Sales, Inc. issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and

pay semiannual interest. Cougar Sales, Inc. uses the straight-line method to amortize the Bond Discount. On June 30, 2020, when Carter makes the first payment to bondholders, how much will they report as Interest Expense?
Business
1 answer:
PSYCHO15rus [73]2 years ago
4 0

Answer:

$700

Explanation:

If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.

Discount = Face value - Issuance price = $15,000 - $14,700 = $300

Bond's Life = 6 years

Amortization of discount = $300 / 6 = $50 annually = $25 semiannually

Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually

Interest Expense Includes both the coupon payment and discount amortization for the period.

Interest Expense = $675 + $25 = $700

You might be interested in
Harvey County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 25 percent per year for the
densk [106]

Answer:

The current stock price should be at $60.15.

Explanation:

We have the dividend paid next year = 1.05 x 1.25 = $1.3125.

So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:

[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.

The present value of the dividend stream from year 8 to infinity ( growing perpetuity):

[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.

The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.

Thus, the answer is $60.15 per share.  

3 0
2 years ago
One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba
Montano1993 [528]

Answer:

A) the affordable method,

In Fine Fettle's management reviews what it is trying to achieve with promotion and sets the budget based on anticipated expenses.

B) the percentage-of-sales method,

In Fine Fettle's management reviews its forecasted sales volume for the turmeric bar and sets is promotional budget at $150,000.

C) the competitive-parity method,

In Fine Fettle looks at its competitors and finds that their average promotional spending ranges from $100,000 to $250,000. Therefore, the promotional budget is set at $200,000.

D) the objective-and-task method.

In Fine Fettle's management reviews its revenues and expenses and allocates promotional spending based on what management believes it has to spend

Explanation:

A) is deciding the promotion expense considering how much can afford based on the expenses budget

B) determninate the promotion based on a percentage of expected sales

C) the company will look at their competitors promotion expense and try to keep up with that level to avoid being left behind

D) management will determinate on a monthly/ weekly basis where and how much to promote

8 0
2 years ago
Randy, the production manager at a computer hardware manufacturing company, is never satisfied with the productivity of his work
Rus_ich [418]

The given scenario clearly illustrates Negative leniency .

Option C

<u>Explanation: </u>

The performance appraisal is a routine analysis of the results of an individual and of a company's total commitment. A performance appraisal, also defined as an «yearly review», "performance review," or "individual appraisal," assesses the ability, success and progress of an employee or its lack of it.

The manager who is neither tough nor easy with rating employees is committed to negative and positive leniency misconceptions. In the performance evaluation process, the employee's unjustified expectations for increases, promotions or tough jobs can be increased by positive leniency.

The worker may be sick of hitting the head against a wall with excessive slowness or toughness/strictness because the manager can not be pleased despite how hard the person tries.

3 0
2 years ago
Read 2 more answers
Ben works at a top accounting firm in salt lake city, and his responsibilities include writing letters, memos, and emails along
rosijanka [135]

The correct answer is information levels. It is because as Ben works at the top accounting firm, he has responsibilities of developing the individuals and departmental goals, and as well as generating financial analysis by which these duties are likely to provide value add to their company and it categorized as different information levels.

5 0
2 years ago
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent produ
patriot [66]

Complete Question:

Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice.

Group of answer choices.

A. restorative

B. customary

C. distributive

D. frontier

E. reparative

Answer:

Distributive.

Explanation:

In this scenario, Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. As a result of this, his manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with distributive justice.

Distributive justice can be defined as the just and fair allocation of resources among a large group of people. It is mainly focused on the use of discretion as opposed to administrative laws, policies or procedures.

<em>Hence, Rashad was offered the much coveted position by his manager not because he was entitled to it by law but as a result of distributive justice being used by the manager. </em>

8 0
2 years ago
Other questions:
  • The Nantell Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment
    15·1 answer
  • An economy produces 1,000,000 computers valued at $2,000 each. Households purchase 200,000 computers, of which 100,000 are impor
    8·1 answer
  • Janet bought a share of stock for​ $47.50 that paid a dividend of​ $.72 and sold one year later for​ $51.38. What was her dollar
    6·1 answer
  • Note: Use the Tax Tables to calculate the answers to the problems listed.
    12·1 answer
  • You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the to
    7·1 answer
  • On September 3, 20X8, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The tran
    6·1 answer
  • Sanders, a 62-year-old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses
    14·1 answer
  • Here is some pricing information for a pair of jeans from different countries. Country Price of a pair of jeans Actual Exchange
    9·1 answer
  • Catherine has been managing her company for a couple of years. She now plans to expand her business by bringing in fresh funding
    11·1 answer
  • Based on its growth prospects, a private investor values a local bakery at $750,000. She believes that cost savings having a pre
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!