A $18000 bond redeemable at par on October 25, 2016 is purchased on August 25, 2007. Interest is 7.9% payable semi-annually and the yield is 6.8% compounded semi-annually.
(a) What is the cash price?
(b) What is the accrued interest?
(c) What is the quoted price?
In: Finance
A $16,000 bond redeemable at par on July 27, 2012 is purchased on October 19, 2002. Interest is 6.9% payable semi-annually and the yield is 7.3% compounded semi-annually.
a. What is the cash price?
b. What is the accrued interest?
c. What is the quoted price?
In: Finance
On October 30, 2018, Rashid Company Factored receivables with a carrying amount of $300000 to Mohammed company. Mohammed company assesses a finance charge of 4% of the receivable and retains 6% of the receivables. Relative to this transaction you are to determine the amount of loss on the sale to be reported in the income statement of Rashid Company for February A. Assume that Rashid factors the receivable on a without recourse basis. The journal entry is B. Assume that Rashid factors the receivables on a with recourse basis. The recourse obligations have a fair value of 2500. The journal entry for Rashid
In: Accounting
A $500 million RMBS pool was issued on 12/01/2019. By October 1, 2020, you would expect the pool factor to be
A. Greater than 1.0
B. Less than 1.0
C. equal to 1.0
In: Finance
Using the high-low method, Vogel Corp. has $90,000 of mixed costs for 31,000 units produced in June and $83,000 for 27,000 units produced in October.
Vogel's variable cost per unit (to the nearest penny) is:
In: Accounting
Clement Corp., a pharmaceutical manufacturer, licensed a drug patent to Global Corp. for royalties of 5% of drug sales. Royalties are payable twice yearly on April 15 for sales from July through December of the previous year and on October 15 for January – June same-year sales. In year 8, Global paid royalties of $20,000 and $25,000 on April 15 and October 15, respectively. In response to Global’s estimate of July – December sales of the drug, Clement correctly recognized $43,000 in royalty revenue in its financial statements dated December 31, year 8. What was Global’s sales estimate for the second half of year 8?
Multiple Choice
$500,000
$360,000
$400,000
Cannot be determined from information given.
In: Accounting
The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
In: Accounting
Z-Mart had the following transactions for October 202x:
Oct 6........ Purchased 650 units of inventory at $1 per unit; terms 2/10, n/30.
8........ Returned 50 defective units and received full credit.
10........ Paid the amount in full, less the returned items.
11........ Sold 100 units to a customer for $1.75 each; terms 1/5, n20.
16........ The customer from October 11th paid the bill.
Required: Prepare journal entries to record each of the preceding transactions. Assume a perpetual inventory system. Note: Round amounts to the nearest cent when applicable.
use the format below as a sample
GENERAL JOURNAL
|
Date |
Account Titles and Explanation |
PR |
Debit |
Credit |
|
In: Accounting
In: Accounting
Vadercat Limited issued $50 million 7.5 percent, 10 year bonds on October 1, 2019. The market rate of interest on the date of the issue was 8 percent. Interest is payable semi-annually on April 1 and October 1. The company’s year-end is December 31.
Required:
a. Prepare journal entries to record all transactions during the first year the bonds are outstanding. The company uses the straight-line method of amortizations.
b. Indicate how the bond obligation would be shown on the company’s year-end statement of financial position.
c. How much interest expense is shown on the 2019 year end income statement?
d. How much interest expense will be shown on the 2020 year end income statement?
In: Accounting