Homework Answers
F-6
Total Amount due = $25000 x (1.03)4 = $28137
F-7
Present Value = $25000 / (1.04)3 = $55,560
Answer is $55,559
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Question F-6 A company borrows $25,000 from a bank, with an interest rate of 3%. The...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on annual compounding, and the principle and interest are due in full 4 years from the date of borrowing. What is the total amount due on this borrowing at the due date?
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on annual compounding, and the principle and interest are due in full 4 years from the date of borrowing. What is the total amount due on this borrowing at the due date?
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. $55,541 $55,549 $55,554 $55,559 $55,562 $55,568 none of the above
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. 1. $55,541 2. $55,549 3. $55,554 4. $55,559 5. $55,562 6. $55,568 7. none of the above
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding.
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16?...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? A balance sheet account is debited for $18,000 and an income statement account is credited for the same amount A balance sheet...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17 Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from previous quedtion) Which of the following statements is correct about the journal entries recorded by the company on 8/30/17? An...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8%...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8% bond Issued on 1/1/21 Matures in 12 years Semi-annual interest payments on 6/30 and 12/31 of each year Market rate for bonds of this type was 7% at the time of their issue Required a. Compute the cash proceeds from the issuance of the bond. b. Create an effective interest amortization table in Excel for the entire life of the...
Prince Charming Company borrows $100,000 from the bank on April 1, 2015. This loan is in...
Prince Charming Company borrows $100,000 from the bank on April
1, 2015. This loan is in the form of a note that is due in one year
(March 31, 2016). The annual interest rate is 10%, and interest is
paid on September 30, 2015 and on March 31, 2016 (due date). The
fiscal year end for Prince Charming is 12/31. What balance should
be recorded for interest expense at March 31, 2016 assuming the
earlier adjusting journal entries have been...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16?...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? A balance sheet account is debited for $18,000 and an income statement account is credited for the same amount A balance sheet...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17 Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from previous quedtion) Which of the following statements is correct about the journal entries recorded by the company on 8/30/17? An...
Prince Charming Company borrows $100,000 from the bank on April
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paid on September 30, 2015 and on March 31, 2016 (due date). The
fiscal year end for Prince Charming is 12/31. What balance should
be recorded for interest expense at March 31, 2016 assuming the
earlier adjusting journal entries have been...
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