subject
Business, 05.05.2020 16:30 Ben2752

On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the first interest payment, which will be greater the debit to Interest Expense or the credit to Cash?

A. The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.

B. The debit to Interest Expense will be less because the market rate is greater than the stated interest rate.

C. The debit to Interest Expense will be greater because the market rate is less than the stated interest rate.

D. The debit to Interest Expense will be lower because the market rate is less than the stated interest rate.

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 12:00, ambercombs
Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?
Answers: 1
image
Business, 22.06.2019 12:30, victorialeona81
Provide an example of open-ended credit account that caroline has. caroline blue's credit report worksheet.
Answers: 1
image
Business, 22.06.2019 18:00, theflash077
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
image
Business, 22.06.2019 18:00, Aethis
Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan
Answers: 2
You know the right answer?
On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannu...

Questions in other subjects:

Konu
Mathematics, 06.07.2019 07:30