Cleansea Ltd. needed to raise $150 million of additional capital to finance the design, development, and construction of its water desalination facility. Volta decided to issue bonds that pay interest of $2,250,000 on each of March 31 and September 30 and that will reach maturity on September 30, 2033. The bonds were issued at 94.4 on October 1, 2020, for $141.6 million, which represented a yield of 3.54%.

a. Has the company raised enough funds to start the development and construction of the water desalination facility? Explain why or why not.

b. Show the journal entry to record the issuance of the bonds.

c. Show the journal entries to record the first two interest payments. Ignore year-end accruals of -interest.

d. Assuming the company has a year end of December 31, what amount will be reported on the statement of financial position at December 31, 2020, related to these bonds?

Presented below are two independent situations.

1. On January 1, 2020, Sandhill Company issued $120,000 of 7%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.

2. On June 1, 2020, Teal Company issued $72,000 of 10%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.

For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31.

Depreciation and Rate of Return

Burrell Company purchased a machine for $51,000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $25,500 each year. The tax rate is 25%.

Required:

Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.

Straight-line method. Do not round intermediate calculations. Round final answers to two decimal places.

Double-declining-balance depreciation method. Do not round intermediate calculations. Round final answers to two decimal places.

please it's urgent, provide correct answer only!! thanku

Monty Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,258,500 of 8% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 6%.

Click here to view factor tables

As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following.

Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)

Burrell Company purchased a machine for $49000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $24500 each year. The tax rate is 25%.

Required:

Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.

Straight-line method. Do not round intermediate calculations. Round final answer to two decimal places.

2016?

2017?

2018?

2019?

2020?

Double-declining-balance depreciation method. Do not round intermediate calculations. Round final answer to two decimal places.

2016?

2017?

2018?

2019?

2020?

1. How does the IFRS evaluation and recording of goodwill compare with the US GAAP?
2. One of your colleagues says that intangible assets should always be amortized over their legal lives. Is he/her correct?
3. Your company needs to raise cash to market a new product it developed. One of your colleagues says “Our Company has an awful lot of goodwill. Why do not we recommend that we sell some of it to raise cash?” How should you respond to him?
4. Contrast the following types of bonds: (a) secured and unsecured, (b) term and serial, (c) registered and bearer. Write a brief memo to one of your investors recommending which option(s) is preferable? And Why?
5. The market price of bonds is solely a function of the amount of the principle payment at the end of the term of the bonds. Do you agree? And why?
6. Your company is considering issuing a convertible bond. Evaluate the advantages and disadvantages of a convertible bond from the stand point of (a) your company and (b) bond holders.

14-60.

Referring to Exercise 14-58, suppose a student has an SAT score of 400. What is her estimate GPA at State University? Discuss the ramifications of using the model developed in Exercise 14-58 to estimate this student’s GPA.

14-58

At State University, a study was done to establish whether a relationship exists between students’ graduating grade point average (GPA) and the SAT verbal score when the student originally entered the university. The sample data are reported as follows:

GPA    2.5 3.2 3.5 2.8 3.0 2.4 3.4 2.9 2.7 3.8

SAT    640 700 550 540 620 490 710 600 505 710

a. Develop a scatter plot for these data and describe what, if any, relationship exists between the two variables, GPA and SAT score.

b. (1) Compute the correlation coefficient. (2) Does it appear that the success of students at State University is related to the SAT verbal scores of those students? Conduct a statistical procedure to answer this question. Use a significance level of 0.01.

c. (1) Compute the regression equation based on these sample data if you wish to predict the university GPA using the student SAT score. (2) Interpret the regression coefficients.

The publisher Reed Elsevier uses a mixed-bundling pricing strategy. The publisher sells a university access to a bundle of 930 of its journals for $1.7 million for one year. It also offers the journals separately at individual prices. Because Elsevier offers the journals online (with password access), universities can track how often their students and faculty access journals and then cancel those journals that are seldom read. Suppose that a publisher offers a university only three journals—A, B, and C—at the unbundled, individual annual subscription prices of pA = $1,600, pB = $800, and pC= $1,500. Suppose a university’s willingness to pay for each of the journals is νA = $2,000, vB = $1,100, and vC = $1,400.

a. If the publisher offers the journals only at the individual subscription prices, to which journals does the university subscribe?

b. Given these individual prices, what is the highest price that the university is willing to pay for the three journals bundled together?

c. Now suppose that the publisher offers the same deal to a second university with willingness- to-pay vA = $1,800, vB = $100, and vC = $2,100. With the two universities, calculate the revenue-maximizing individual and bundle prices.

QUESTION C IS VERY CONFUSING FOR ME. THANKS FOR YOUR HELP AND STEP BY STEP EXPLANATION SIR/MADAM.