Obsidian Mining, Inc. issued a series of 5.2%, $200,000 bonds on April 1, 2020. The bonds will pay interest semi-annually on September 30 and March 31 and mature in 10 years. At the time of issuance, the market rate of interest was 4.8%.

Instructions

1. Record the journal entry for the issuance of the bonds on April 1, 2020.
2. Record the journal entry for the first interest payment on September 30, 2020.
3. Record the year-end accrual for interest on December 31, 2020.
4. What is the total cash paid for interest by Obsidian over the life of the bonds?
5. What is the total effective interest expense recognized by Obsidian over the life of the bonds?
6. Assume that Obsidian retires the bonds at 101 immediately after the 8th interest payment, when the carrying value of the bonds is $204,128. Record the journal entry to retire the bonds.

Which of the following statements best expresses the social justice view of public health? Every adult individual is responsible for his or her own lot in life The government should provide everyone with an equal income Members of a community have collective responsibility for their common welfare Members of a community have a responsibility to prevent any individual from raking risks that could harm his or her health

In the Memphis Sanitation Strike, explain how the presence of national Civil Rights leaders and the participation of local clergy members and community leaders in boycotts and civil disobedience garnered national attention to the strike. And how does their presence play into strikes and lockouts today. Reference the Air Traffic Controllers’ strike of 1981.

Textbook: Labor Relations and Collective Barganining: Private and Public Sectors, Tenth Edition

Pyre Company leased equipment to the Poland Company on January 1, 2020, for a ten-year period. Equal annual payments under the lease are $240,000 and are due on January 1 of each year beginning on the date the lease was signed. The rate of interest used by Pyre to compute the lease payments is 9%. The lease receivable before the first payment is $1,678,860, and the cost of the equipment on Pyre’s accounting records was $1,488,000.

Assuming that the lease is appropriately recorded as a sale for accounting purposes, write the entries required on the date the lease is signed and on December 31, 2020.  

1.If the price index increases from 120 to 130 then the inflation rate during the past year was 10%. True or False

2.If the price index has a value of 122 then the inflation rate during the past year must have been 22%. True or False

3.The GDP deflator is used to calculate the inflation rate. True or False

4.

You deposit $900 in a savings account and one year later you have $945. At the same time, the CPI increases from 200 to 206. The nominal interest rate is ----% and the real interest rate is ----%.

Enter whole numbers.

5.Consider an economy in which the rate of inflation is always positive. If the price index had a value of 134 in the year 2010 then the base year used to calculate the price index is some year before 2010. True or False

6.Across a 10 year period John finds his income has increased by 35% while at the same time prices of the goods and services he buys have increased by 45%. John feels like his purchasing power has declined. True or False

As of December 31, 2009, a company’s assets consisted of $60,000 of cash, $120,000 of marketable securities, $200,000 of accounts receivable, $300,000 of inventory, and $1,200,000 of net plant and equipment. Its liabilities consisted of $50,000 of accounts payable, $20,000 of accruals, $70,000 of notes payable, and $600,000 of long-term debt.

As of December 31, 2010, the company’s assets consisted of $70,000 of cash, $140,000 of marketable securities, $250,000 of accounts receivable, $400,000 of inventory, and $1,300,000 of net plant and equipment. Its liabilities consisted of $65,000 of accounts payable, $15,000 of accruals, $75,000 of notes payable, and $600,000 of long-term debt.

In 2010, the company’s annual sales were $4,700,000, earnings before interest and taxes were $800,000, it paid $60,000 of interest, and its tax rate was 30%. The company’s weighted average cost of capital is 11% per year and it has 500,000 shares of common stock outstanding. The company expects its free cash flow to grow forever at a rate of 6% per year. Estimate the value per share of the company’s common stock.

Please complete in excel and post answer and formulas.

Given the financial statements below for Firefly Enterprises, what is the external financing need for a pro forma increase in sales of 11%? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.