On the first day of the fiscal year, a company issues a $338,000, 7%, 10-year bond that pays semiannual interest of $11,830 ($338,000 x 7% x 1/2), receiving cash of $354,900. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.

Interest Expense _____ _____

Premium on Bonds Payable ______ ______

Cash_____ ______

The company's financial year is the calender year. Certain costs (incl. wages, rents and taxes) of 195000 € total are paid out in the middle of each month.

The company's first financial year is, exceptionally, only six months of length (1.7.-31.12.). At the beginning of the first financial year, the company has taken out a loan of 7200000 € total that has not been amortized. However, an interest of 5 % p.a. has been paid at the end of the financial year. The company has made an initial investment of 10800000 €. Half of the investment has been paid during the previous financial year and the rest must be paid at the beginning of the second financial year. Nothing has been sold yet during the the first financial year.

The revenues of the second financial year are estimated according to shipped (billed) quantities of 30000 units at a unit price of 300 € per unit. The variable costs consist of purchasing the materials and are expected to be 174 € per unit. At the end of the second financial year, 3600000 € of the debt must be amortized and an interest must be paid.   

The company then specifies the plan for the second financial year. 34 % of the annual volumes are delivered during the first half of the year and 66 % during the second. Monthly volumes are constant during both phases and the customers are given one month for payments. The company purchases the materials for the second financial year in three equal instalments. The first batch has arrived at the end of December, but the bill is not due until at the end of January. The next batches arrive at the beginning of May and September. In order for the business to run smoothly during the next year as well, the company purchases an additional batch of materials for 7500 units towards the end of December (20.12). Each batch is payable in 14 days.

It is recommended to make a table of months having the monthly information of incoming and outgoing payments allocated to the three cash flows, changes in cash and equivalents and total cash and equivalents.

a. Calculate the cash flow from operating activities of the the first financial year.

b. Calculate the cash flow from investment activities of the entire first financial year.

c. Calculate the payments received from the customers during the first half of the second financial year (1.1.-30.6.).

d. Calculate the payments made to the company's suppliers 1.1.-30.6.

e. Calculate the company's cash flow from operating activities during the first half of the second financial year (1.1.-30.6.).

f. Calculate the company's cash flow from investment activities during the first half of the second financial year(1.1.-30.6.).

g. Calculate the change in cash and equivalents during the first half of the second financial year (1.1.-30.6.).

h. Let's consider the company's monthly liquidity: The company would become insolvent if its cash and equivalents would be less than 0,00 € at the end of any month. How much at least must the company have had shareholder's capital, i.e. the money that the owners have invested to the company at the beginning, so that it will not become insolvent during the first half of the second financial year (1.1.-30.6.)?

i. Calculate the company's cash flow from operating activities of the entire second financial year (1.1.-31.12).

j. Calculate the company's cash flow from financing activities of the entire second financial year (1.1.-31.12.).

k. Let's consider the company's mothly liquidity again: The company would become insolvent if it's cash and equivalents would be less than 0,00 € at the end of any month. How much, at least, must the company have had shareholder's capital, i.e. the money that the owners have invested to the company at the beginning, so that it will not become insolvent during the entire second accounting period (1.1.-31.12.)?

l. Let's consider the company's monthly liquidity in more detail: The company would become insolvent if it's cash and equivalents would be less than 0,00 € at the end of any month. How much does the company have to take new debt at the beginning of the third financial year in order not to become insolvent in January of the third year? Let's assume that the company had just enough shareholder's capital at the end of the second year.

Last year, Harvey purchased a condominium in St Augustine, Florida. In the current year, Harvey and his family used the condominium for a total of 36 days. The condominium was rented out a total of 90 days during the year, generating $17,400 of rental income. Harvey incurred the following expenses in the current year:

           Property taxes                               $6,835

                      Mortgage interest                            16,960

                      Insurance                                       1,640

                        Utilities                                         5,410

                      Depreciation                                12,150

a. Determine all of Harvey's deductible expenses using the Tax Court approach (including those on Schedule A).

b. How much depreciation can be deducted in the current year if the rental income was $22,420?

obtain the annual reports for the 2018-19 financial year and the 2017-18 financial year of the ANZ company. Questions 1. Focus on the leases agreements, the company has entered, as a lessee. As the new lease accounting standard (AASB16) is effective for the first financial year commencing on or after 1 January 2019, your company is probably still applying the previous accounting standard (AASB117). Discuss how the new accounting standard will impact the assets, liabilities, and profit of your company.(provide and show the report of the company)

The Polozzi Trust will incur the following items in the next tax year, it's first year of existence:

Interest Income $25,000

Rent Income $100,000

Cost Recovery Deductions for the rental activity $35,000

Capital gain income $40,000

Fiduciary and tax preparation fees $7,000

Betty the grantor of the trust is working with you on the language in the trust instrument relative to the derivation of annual accounting income for the entity. She will name Shirley as the sole income beneficiary and Benny as the remainder beneficiary.

a. Suggest language to Betty that will maximize the annual income distribution to Shirley.

b. Suggest language to Betty that will minimize the annual distribution to Shirley and maximize the accumulation on Benny's behalf.

Find the monthly payment in year 2 for the following ARM: First year rate = 5.4%; 2% annual cap, 6% overall cap; 30-year amortization; margin = 3.0%; Treasury index at end of year 1 = 4.2%; loan amount = $164,000.

A closed-end fund starts the year with a net asset value of $21 . by year-end , NAV equals $20.5 . At the beginning of the year , the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV . the fund paid year-end distributions of income and capital gains of 2.50$ . what is the rate of return to an investor in the fund during the year ?

Techworld is expecting to pay out a dividend of $2.23 next year (year 1). After that it expects its dividend to grow at 5 percent per annum for the next five years (for years 2 to 6). What is the dividend that is expected to be paid in year 4? (to nearest cent; don’t include $ sign)

4. The one year interest rate in Europe is -0.50%. The one year US rate is 0.20%. The EURUSD rate is 1.0700. What should the one year EURUSD forward rate be? GIVE YOUR ANSWER OUT TO FOUR DECIMAL PLACES.(3)

5. If the one year EURUSD forward rate is 1.1000 what are the steps one can take to earn a riskless profit? (3)

Ayura is offered mortgage rates of 3.13% on a 15-year and 5.70% on a 30-year. She is able to make either payment and is buying a house with an initial loan balance of $189,000. Her lender is offering 2.5 discount points and she will pay $5,700 is third party expenses. She is able to earn 9.8% investing in the S&P 500. Answer each of the following:

a. What is her monthly payment for each loan?

b. What is the lender's yield on each loan?

c. What is the effective borrowing cost of each loan?

d. Based on present value computations which loan is a better option for her?