On January 1, 2017, Surreal Manufacturing issued 680 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2019. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $670,567. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.) 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Prepare the journal entries to record the interest payments on December 31, 2017, and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) 4. Prepare the journal entry to record the interest and face value payment on December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) 5. Assume the bonds are retired on January 1, 2019, at a price of 101. Give the journal entry to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
In: Accounting
Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, annual pay bond that has a coupon rate of 8.12%. If the yield to maturity for the bond is 7.58%, what will the price of the bond be?
Answer format: Currency: Round to: 2 decimal places.
Assume a par value of $1,000. Caspian Sea plans to issue a 12.00 year, annual pay bond that has a coupon rate of 7.96%. If the yield to maturity for the bond is 8.48%, what will the price of the bond be?
Answer format: Currency: Round to: 2 decimal places.
What is the value today of a money machine that will pay $2,452.00 per year for 15.00 years? Assume the first payment is made 2.00 years from today and the interest rate is 6.00%.
Answer format: Currency: Round to: 2 decimal places.
In: Finance
Using C language: (Note: If a family of 4, apply family of 3 cost plus the cost of 1 participant. K800 is the fixed cost for a family of 3.)
A bus company organizes a tour. The tour is open for 4 days and participants can register for the number of days they would like to participate in the tour. Each participant would pay K 300 for the tour per day, a family of 3 would pay K 800 per day, and a family of 5 would pay K 1000 per day Write a program that calculates the cost of participating in the tour The program reads the number of participants input by the user, and the number of days of participation Based on these variables and the prices outlined for the tour, the program should then calculate the total cost of participating in the tour If a participant(s) registers for more than 2 days of the tour, the first 2 days will be at full price while the days after will be at half price Include the program algorithm in your design.
In: Computer Science
Develop a simulation model for a 3-year financial analysis of total profit based on the following data and information.
Sales volume in the first year is estimated to be 100,000 units and is projected to grow at a rate that is normally distributed with a mean of 7% per year and a standard deviation of 4%. The selling price is $10, and the price increase is normally distributed with a mean of $0.50 and standard deviation of $0.05 each year. Per-unit variable costs are $3, and annual fixed costs are $200,000. Per-unit costs are expected to in- crease by an amount normally distributed with a mean of 5% per year and standard deviation of 2%. Fixed costs are expected to increase following a normal disribution with a mean of 10% per year and standard de- viation of 3%. Based on 10,000 simulation trials, find the average 3-year cumulative profit.
Generate and explain a trend chart showing net profit by year.
THANK YOU!
In: Statistics and Probability
A COMPANY ISSUE A BOND WITH THE FOLLOWING DETAILS FACE A BOND WITH FACE AMOUNT 80,000 CONTRACT RATE 16% TERMS OF BONDS 5 YEAR BOND,SEMI ANNUAL PMTS MARKET RATE 11% INDEX NO. ( PV OF FACE AMOUNT OF BOND) 0.58543 INDEX NO. ( PV OF ANNUITY) 7.53763 CALCULATE: A TOTAL NUMBER OF INTEREST PMTS ? B INTEREST PMT/YEAR ? C SEMI ANNUAL PMT ? D SELLING PRICE OF BOND ? E IS THE ISSUENCE AT DISCOUT OR PREMIUM? ? JOURNALIZE THE FOLLOWING ENTERIES F ISSUENCE OF THE BOND G PAYMENT OF FIRST INTEREST EXPENSE (WITHOUT AMORTIZATION) H AMORTIZATION OF DISCOUNT/PREMIUM I RETIREMENT OF BOND AT THE TIME OF MATURITY J SUPPOSE THE COMPANY DOES NOT RETIRE THE BOND AT MATURITY AND INSTEAD IT REDEEMS THE BOND WITH THE FOLLWING DETAILS UMAMORTIZED PREMIUM/DISCOUNT 8000 THE COMPANY REDEEMED 1/4 TH OF THE BONDS WITH CALLING PRICE 18,000 JOURNALIZE THE ENTRY FOR REDEMPTION OF BOND
In: Accounting
Question 1 – Periodic Inventory System
Amna's Jewelry Store purchased three diamond and emerald bracelets
during March. The price of diamonds has fluctuated wildly during
the month, causing the supplying firm to change the price of the
bracelets it sells to Amna's Jewelry Store.
a. On March 5, the first bracelet cost $4,600.
b. On March 15, the second bracelet cost $5,100.
c. On March 20, the third bracelet cost $3,500.
Suppose Jayne's Jewelry Store sold two of these bracelets for
$7,000 each.
Required:
1. Using FIFO, what is the cost of goods sold for these sales and
what is the value of ending inventory? What is the gross profit?
2. Using LIFO, what is the cost of goods sold for these sales and
what is the value of ending inventory? What is the gross profit?
3. Using weighted average cost, what is the cost of goods sold and
what is the value of ending inventory? What is the gross profit?
In: Accounting
VAUGHN Ltd. had earnings per share of $5 as of December 31, 2022, but paid no dividends. Earnings were expected to grow at 14.8 percent per year for the following five years. VAUGHN Ltd. will start paying dividends for the first time on December 31, 2027, distributing 50 percent of its earnings to shareholders. Earnings growth will be 6 percent per year for the next six years (that is, from January 1, 2028, through to December 31, 2033). Starting on December 31, 2033, VAUGHN Ltd. will begin to pay out 80 percent of its earnings in dividends and earnings growth will stabilize at 2 percent per year in perpetuity.The required rate of return on VAUGHN stock is 10 percent. What should be the current share price of VAUGHN? (Round intermediate calculations to 6 decimal places, e.g. 15.612125 and the final answer to 2 decimal places, e.g. 15.61.)
Current share price of VAUGHN $______
In: Finance
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Suppose that a firm’s recent earnings per share and dividend per share are $3.90 and $2.90, respectively. Both are expected to grow at 7 percent. However, the firm’s current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years. |
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Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places.)
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Calculate the price of this stock today, including all six cash flows at discount rate of 9 percent. |
| Present value | $ ? |
In: Finance
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Suppose that a firm’s recent earnings per share and dividend per share are $3.00 and $2.30, respectively. Both are expected to grow at 10 percent. However, the firm’s current P/E ratio of 24 seems high for this growth rate. The P/E ratio is expected to fall to 20 within five years. |
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Compute the dividends over the next five years. (Do not round intermediate calculations. Round your final answer to 3 decimal places.) |
| Dividends | Years |
| First year | $ |
| Second year | $ |
| Third year | $ |
| Fourth year | $ |
| Fifth year | $ |
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Compute the value of this stock price in five years. (Do not round intermediate calculations. Round your final answer to 2 decimal places. |
| Stock price | $ |
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Calculate the present value of these cash flows using a 12 percent discount rate. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Present value | $ |
In: Finance
On June 1, 2011, Everly Bottle Company sold $1,000,000 in long-term bonds for $877,600. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions
(a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.)
(b) The sales price of $877,600 was determined from present value tables. Specifically explain how one would determine the price using present value tables.
(c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2013. (Round to the nearest dollar.)
In: Accounting