Airline equipment obtains a $100,000, three-year loan, at 6% interest, v monthly payments of $3,042. What amount would be tape-recorded as the reduction in major for the an initial full month?
Airline equipment obtains a $100,000, three-year loan, at 6% interest, with monthly payment of $3,042. What amount would be tape-recorded as interest cost in the 2nd month?
Airline equipment obtains a $100,000, three-year loan, in ~ 6% interest, with monthly payment of $3,042. What amount would be recorded as the reduction in primary for the 2nd month?
A company leases an office building for 24 months. In ~ the beginning of the lease period, the lessee (user) would:
Bonds deserve to be secured or unsecured. Likewise, bonds have the right to be term or serial bonds. Which is much less common?
If bonds are issued with a declared interest rate higher than the market interest rate, the bonds will certainly be approve at
If bonds are issued at a premium, over the life the the bonds, the carrying value and also interest price will:
An implied rate based upon the price investor pay to purchase a bond in return for the ideal to receive the confront amount in ~ maturity and periodic interest payments over the remaining life that the bond.
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When bonds are issued at challenge amount, what happens to the moving value and interest cost over the life that the bonds?
Outdoor Adventures worries bonds in ~ a discount. Top top the maturity date, the bonds" transferring value will be
Animal human being issues ten-year bonds at their confront amount of $100 million v the alternative to contact the bonds at $102 million. 2 years later, interest rates have decreased and Animal people decides to speak to the bonds. The company estimates the over the next eight years, castle will save $16 million of cash interest. The newspaper entry to retire the bonds will include a:
Douglas county Fairgrounds retires a $50 million bond problem when the transporting value of the bond is $52 million, but the industry value that the bond is only $47 million. The entry to record the retirement will certainly include:
The present value of the bond"s confront amount to add the present value of its periodic interest payments.
Assuming more debt have the right to be great for the company as long as they knife a return in overfill of the price charged top top the obtained funds.
A agency purchased brand-new equipment for $31,000 v a two-year installment keep in mind requiring 5% interest. The required monthly payment is $1,360. Because that the first month"s payment, what is the lot to record for interest expense?
A agency purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The compelled monthly payment is $1,360. After the first month"s payment, what is the balance that the note?
Which the the following generally represents an advantage of leasing over purchasing one asset through an rate note?
A firm needs construction equipment to finish a task over the next 20 months. The equipment costs $10,000. Rather of purchasing the devices with a 12% note, the company leases the equipment with payments of $300 due in ~ the finish of each month. For what amount would certainly the firm record the lease legal responsibility at the start of the lease?
When bonds room issued at a premium, what happens to the carrying value and interest price each period over the life that the bonds?
A agency issues $50,000 that 4% bonds, due in 5 years, with interest payable semiannually. Suspect a sector rate that 3%, the bonds worry for $52,306. Calculate interest price as of the first semiannual attention payment.
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A company issues $50,000 that 4% bonds, early out in 5 years, with interest payable semiannually. Presume a industry rate of 3%, the bonds worry for $52,306. Calculate the carrying value of the bonds after ~ the very first semiannual attention payment.
Lincoln county retires a $50 million bond issue when the carrying value the the bond is $48 million, yet the market value the the bonds is $54 million. Lincoln ar will document the retirement as