Answer:
the Cash and Cash Equivalents on June 30 is $22,495
Explanation:
The computation of the Cash and Cash Equivalents on June 30 is given below:
Cash in bank account $ 11,455
Add: Money market fund balance $ 10,400
Petty cash balance $ 350
Money orders $ 290
Cash and Cash Equivalents $22,495
Therefore the Cash and Cash Equivalents on June 30 is $22,495
Franklin is a research scientist at Insight Research Corporation (IRC). IRC has five research scientists, four assistants, one secretary, and one CEO. Franklin has developed ALS, a disease which binds him to a wheelchair. He is one of the greatest scientists in the world, and can still do his job. Franklin has requested that IRC accommodate his disability, making changes to the company restroom and widening the doors to the building. The changes would be relatively inexpensive, costing only $2,000. If Franklin sues under the Americans with Disabilities Act (ADA), what result
If Franklin sues under the Americans with Disabilities Act (ADA), Franklin will win and this will force IRC to accommodate his disability under this civil rights legislation.
The ADA law was passed to protect persons experiencing physical or mental impairment or disability against workplace discriminations.
While ALS is recognized as a progressive nervous system disease that surely affects Franklin's nerve cells in his brain and spinal cord, which has caused him to lose muscle control, he can still perform his duties as a research scientist at IRC.
Thus, Insight Research Corporation should accommodate Franklin and make the necessary changes, which have been determined to be relatively inexpensive to the company.
Thus, if IRC fails to accommodate Franklin and he sues the company in the court under ADA, he will prevail.
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Opportunity cost is the amount of increase or decrease in cost that would result from the best available alternative to the proposed use of cash or its equivalent.
a) true
b) false
The given statement is "False". A further explanation is provided below.
Whenever a decision had been made above another, the profit losses are determined as an Opportunity cost. This same notion is merely beneficial as a refresher or recalls to consider all acceptable possibilities well before a person decides.Opportunity costs aren't just an equity account method and hence are not included throughout a company's financial statements. This is simply a notion of the financial assessment.
Thus the above is the right answer.
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ADP reports the following income statement.
AUTOMATIC DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June 30, 2019, $ millions
Total revenues $14,175.2
Operating expenses 7,145.9
Systems development and programming costs 636.3
Depreciation and amortization 304.4
Total cost of revenues 8,086.6
Selling, general, and administrative expenses 3,064.2
Interest expense 129.9
Total expenses 11,280.7
Other income expense, net 111.1
Earnings before income taxes 3,005.6
Provision for income taxes 712.8
Net earnings $ 2,292.8
Forecast ADP’s 2020 income statement assuming the following income statement relations. All percentages (other than total revenue growth and provision for income taxes) are based on historic percent of total revenues.
Total revenues growth 13%
Depreciation and amortization $460.5 million
Interest expense No change
Other (income) expense, net No change
Income tax rate 25%
Round your answers to one decimal place.
Answer:
Forecast of 2020 net earnings = $299.2 million.
Explanation:
Note:
a. See part a of the attached excel file for the calculations of the Historic Percent of Total Revenue.
b. See part b of the attached excel file for the Forecast of ADP’s 2020 income statement.
From part b of the attached excel file, we have:
Forecast of 2020 net earnings = $299.2 million.
On January 1, Jorge Inc. issued $3,000,000, 8% bonds for $2,817,000. The market rate of interest for these bonds is 9%. Interest is payable annually on December 31. Jorge uses the effective-interest method of amortizing bond discount. At the end of the first year, Jorge should report unamortized bond discount of:
Answer: $169470
Explanation: Firstly, we'll calculate the discount on bond which will be:
= Issue Price - Par Value
= $3,000,000 - $2,817,000
= $183,000
Then, the interest payable will be:
= Coupon Rate × Bond ParValue
= $3,000,000 × 8%
= $3,000,000 × 0.08
= $240,000
We will calculate the interest expense as:
= Issue Value × Market Rate
= $2,817,000 × 9%
= $253,530
Then, the amortized amount for Year 1 will be:
= Interest Expense - Interest Payable
= $253,530 - $240,000
= $13,530
Therefore, the unamoritzed amount of bond discount will be:
= $183,000 - $13,530
= $169,470
Company J must choose between two alternate business expenditures. Expenditure 1 would require a $80,000 cash outlay and Expenditure 2 requires a $60,000 cash outlay.
a. Determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal assuming that Expenditure 1 is fully deductible and Expenditure 2 is nondeductible.
b. Determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal assuming that Expenditure 1 is 50% deductible and Expenditure 2 is nondeductible.
Answer:
A. 25%
B. 50%
C. 48000 after tax cash flow
Explanation:
a. lets assume marginal tax rate is X%
After tax cash flow of 80000 should equal to 60000$
$80000 - [$80000*X%] = 60000$
80000*X% = 80000-60000
80000*X% =20000
X = 20000/80000
= 25%
b.
$80000 - [$80000*50%*x%] = 60000$
40000*x%=20000
x%=50%
c.
$80000- [$80000*x] = 60000 - [60000*50%*x]
80000-60000 = [80000*x] - [30000*x]
20000 = 50000x
x=40%
check
80000-40% =48000 after tax cash flow
60000*50%
=60000- [60000*50%*40%]
=48000 after tax cash flow
Let illustrate what you you know about materiality concept.
Answer:
rfb rgab rko
its a study meeting of girls i am also girl here we only study boy were not allowed because he disturb here we only study its safe meeting of girl here we only study
Four aspects of empowered performance are understanding variation, deciding what to measure, working correctly with data, and using the resulting information appropriately.
a. True
b. False
Answer:
False
Explanation:
Copy equipment was acquired at the beginning of the year at a cost of $50,320 that has an estimated residual value of $4,600 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,143,000 copies. This year, 288,000 copies were made. a. Determine the depreciable cost. $fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places. $fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year
Answer:
Annual depreciation= $11,520
Explanation:
Giving the following information:
Purchase price= $50,320
Salvage value= $4,600
Estimated copies= 1,143,000
First, we need to calculate the depreciable value:
Depreciable value= purchase price - salvage value
Depreciable value= 50,320 - 4,600
Depreciable value= $45,720
Now, the depreciable rate:
Depreciable rate= depreciable value / /useful life of production in copies
Depreciable rate= 45,720/1,143,000
Depreciable rate= $0.04 per copie
Finally, the annual depreciation:
Number of copies= 288,000
Annual depreciation= 0.04*288,000
Annual depreciation= $11,520
Over a certain period, large-company stocks had an average return of 12.34 percent, the average risk-free rate was 2.53 percent, and small-company stocks averaged 17.25 percent. What was the risk premium on small-company stocks for this period
Answer: 14.72%
Explanation:
Risk premium is the amount of return that an investment provides over the risk free return of the market. This is to cater for the higher risk that an investor would incur for investing in the stock.
Risk premium for small company stocks = Average return for small stocks - Risk free rate
= 17.25% - 2.53%
= 14.72%
Expert Lawn Services offers customers a reduced price for lawn care if they pay for 6 months service in advance. In March 2020, 50 customers prepay $540 each for services to be provided from April through September. Expert recognizes revenue proportionately over the 6-month period. What is Expert's unearned revenue liability as of April 30
Answer:
the total unearned revenue be $22,500.
Explanation:
The computation of the unearned revenue liability is given below:
advance paid 540.00
Divided by tenure of services months 6.00
revenue to be recognized per month 90.00
Now unearned revenue for 30 april i.e. for five months 450.00
Multiply by no of customers 50.00
So, the total unearned revenue be $22,500.
Unearned Revenue liability refers to the amount received in advance for the services or product that has yet to be provided to the customers. The unearned revenue liability is $22,500.
What is revenue?
Revenue refers to the inflows of cash in a company by operating normal business activities. Net income is calculated by deducting costs from the revenues.
The expert's unearned revenue liability is calculated as follows:
[tex]\begin{aligned}\text{Total revenue}&= \text{No. of customer }\times\text{ amount paid by each customer}\\&=50 \times \$540\\&=\$27,000\end{aligned}[/tex]
Revenue for the month of April is $27,000 divided by 6 months= $4,500
Unearned revenue liability is
[tex]\begin{aligned}\text{Unearned revenue liability}&= \text{Total Revenues }-\text{ Revenue earned for april}\\&=\$27,000 - \$4,500\\&=\$22,500\end{aligned}[/tex]
Therefore, the unearned revenue liability is $22,500.
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Identify a new product that is based on an innovation in technology, and draw up a strategic technical plan for its development. Be sure to discuss the risk factors at each stage, and indicate how you would deal with each.
"An electric car" is a new product that depends upon technological innovation.
Its progress is guided by a strategic technology plan:
The production of new ideas:
The lithium-ion battery throughout the electric vehicle will provide the energy needed to run its engine. Installation of the battery would ensure it can do all the functions which the consumer would expect from a typical vehicle.The idea is evaluated:
The lithium-ion battery-powered electric car ought to be able to equal the speed of a gasoline or diesel-powered vehicle.Analysis of the business environment:
Due to its reduced mileage, such a car would be perfect for customers who are unable to pay the rising cost of oil for the vehicles. Thus, electric vehicles would've been ideal to clients with fundamental part from middle income to high class. Its car would attract a huge number of customers, as consumers are looking for vehicles that may help them save cash on gasoline prices.Development:
The fuel or diesel cylinder and batteries would be fitted in the car's bonnet. The rest of the car assembly process will proceed normally usual.Commercialization:
Customers will be able to buy cars through a countrywide dealer network.The car's battery plays a significant role in each step of the process. Whereas if a car's batteries run out while it was on the road, it could be recharged using another energy source. During a crisis, solar plates will absorb the sun and power a battery. As a result, the vehicle will keep running smoothly.Learn more:
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During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor. Actual direct labor in August was 12,000 hours at $15.00 per hour, for a total of $180,000. Estimated overhead in August was $111,600.
Actual overhead was composed of the following items:
Indirect materials $ 16,400
Indirect labor 22,000
Utilities 24,500
Depreciation 38,700
Repair expense 13,500
Total $115,100
How much overhead was applied during August by Ranson Productions?
A. $115,100
B. $108,000
C. More information is needed to answer
D. $111,600
Answer:
B. $108,000
Explanation:
The computation of the overhead applied is as follows:
= Total actual direct labors cost × overhead rate
= $180,000 × 0.60
= $108,000
Hence, the overhead was applied during August by Ranson Productions is $108,000
We simply applied the above formula
Maverick law office currently orders ink refills 120 units at a time. The firm estimates that carrying cost is 40% of the $10 unit cost and that annual demand is about 480 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its current action (order quantity) be optimal
Answer:
Economic order quantity (EOQ)= 49 units
Explanation:
Giving the following information:
Demand= 480 units per year
Order cost= $10
Holding cost= 10*0.4= $4
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
Economic order quantity (EOQ)= √[(2*480*10) / 4]
Economic order quantity (EOQ)= √(2,400)
Economic order quantity (EOQ)= 49 units
McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2019, 100,000 shares were sold to the company's founders. However, on October 15, 2019, McKean repurchased 20,000 shares to settle a dispute among the founders. At this date, how many shares were issued and outstanding, respectively?
Answer:
100,000 shares and 80,000 shares
Explanation:
Calculation to determine how many shares were issued and outstanding, respectively
The shares that were issued will be 100,000 shares that were sold to the company's founders while the shares outstanding will be 80,000 shares Calculated as :
Shares outstanding=Shares issued -Shares repurchased
Shares outstanding=100,000 shares-80,000 shares
Shares outstanding =80,000 shares
Therefore the Number of shares that were issued and outstanding, respectively are:100,000 shares and 80,000 shares
Which of the following statements is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments?
a. Departments with more employees are allocated earlier.
b. Departments serving a large number of support departments are allocated earlier.
c. Departments with higher costs are allocated earlier.
d. Departments with more accurate cost drivers are allocated earlier.
Answer: A. Departments with more employees are allocated earlier.
Explanation:
In the sequential method, it should be noted that a company allocates the service costs one department at a time. Once the service department cost is allocated by the accountants, the department won't get any other costs from the other service departments.
The statement that is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments is that the departments with more employees are allocated earlier.
Under the sequential method, the department costs that are allocated earlier include having an accurate cost drivers, having a higher cost, or having a large number of support.
Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August are. Week 1 280 Week 2 380 Week 3 580 Week 4 680 a. Using a three-week moving average, what would you forecast week 5 to be
Answer: 547 yellow tablets
Explanation:
The three-week moving average would use the average of the tablets in the last three weeks before the 5th weeks to calculate the average for the 5th week.
= (Week 2 + Week 3 + Week 4) / 3
= (380 + 580 + 680) / 3
= 1,640 / 3
= 546.7
= 547 yellow tablets
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Answer: $9,800
Explanation:
Payroll taxes = Social security + Medicare +State unemployment + Federal unemployment
= (110,000 * 6%) + (110,000 * 1.5%) + (25,000 * 5.4%) + (25,000 * 0.8%)
= 6,600 + 1,650 + 1,350 + 200
= $9,800
Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price—hourly wage rate $16.70, payroll taxes $0.60, and fringe benefits $1.40. (2) Quantity—actual production time 1.60 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)
(a) Standard direct labor rate per hour. $ ______
(b) Standard direct labor hours per gallon. hours
(c) Standard labor cost per gallon. $______
Answer:
a. Standard direct labor rate per hour = Hourly wage rate + Payroll taxes + Fringe benefits
Standard direct labor rate per hour = $16.70 + $0.60 + $1.40
Standard direct labor rate per hour = $18.70
b. Standard direct labor hours per gallon = Actual production time + Rest periods and cleanup + Setup and downtime
Standard direct labor hours per gallon = 1.60 hours + 0.30 hours + 0.20 hours
Standard direct labor hours per gallon = 2.1 hours
c. Standard labor cost per gallon = Standard direct hours per gallon * Standard direct labor rate per hour
Standard labor cost per gallon = 2.1 hours * $18.70
Standard labor cost per gallon = $39.27
what are the first steps to start business
Answer:
finding a market for your product then finding a marketing strategy then get your assets set up
Explanation:
An employee on the Internet-facing part of a company's website submits a 20-character phrase in a small textbox on a web form. The website returns a message back to the browser stating Error: Table 'advprofile' entry into column 'Inane' has exceeded number of allowed characters. Error saving database information. Of which of the following is this an example?
A. Resource exhaustion
B. Buffer overflow
C. Improperly configured account Improper error handing
Answer:
(B) Buffer Overflow
Explanation:
The description in the question is an example of a Buffer Overflow. This is also called a Buffer Overrun.
As the question depicts, the employee input more characters than was required in the text box. The text box was programmed to allow a more limited number of characters; maybe 15, 12, 18, etc but not up to 20.
A buffer is a storage space that holds data temporarily while it's being transported to a new space. An overrun on the buffer will occur if or when the inputed data exceeds the storage capacity of the buffer.
This overrun can cause the program to crash or access errors to develop; like the errors displayed in the question.
Susan uses her office building as collateral to access credit and take out a loan from the bank. Because of the loan, she can hire three people to help her manage her business.
Answer:
property rights
Explanation:
edmentum/plato
g. provides the following information for 20X8: Net income $260,000 Market price per share of common stock $60 per share Dividends paid $200,000 Common stock outstanding at Jan. 1, 2018 150,000 shares Common stock outstanding at Dec. 31, 2018 230,000 shares The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock.
Answer:
53.09
Explanation:
The price/earnings ratio of common stock is an investment ratio that compares the current price of the stock to its earnings per share, in a bid to assess the stock performance relative to its earnings
share price=$60
earnings per share=net income/year-end shares outstanding
net income=$260,000
year-end outstanding shares=230,000
earnings per share=$260,000/230,000
earnings per share=$1.13
price/earningsratio=$60/$1.13
price/earningsratio=53.09
O'Reilly Corporation uses direct labor-hours to calculate its annual plantwide predetermined overhead. For the current period's estimated level of production, O'Reilly Corporation estimated that 39,000 direct labor-hours would be required. Estimated fixed manufacturing overhead cost is $599,000 for the current period and variable manufacturing overhead cost of $3.00 per direct labor-hour. O'Reilly Corporation's actual manufacturing overhead cost for the period was $788,379 and its actual total direct labor was 39,500 hours.
Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Predetermined overhead $ ________.
Answer:
Predetermined manufacturing overhead rate= $18.36 per direct labor hour
Explanation:
Giving the following information:
Estimated overhead cost for the period= $599,000
Variable overhead rate= $3 per DLH
Number of estimated direct labor hours= 39,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (599,000 / 39,000) + 3
Predetermined manufacturing overhead rate= $18.36 per direct labor hour
OR:
Fixed overhead rate= 599,000/39,000= $15.36 per DLH
Variable overhead rate= $3 per DLH
Plantwide overhead rate= $18.36 per direct labor hour
A journal entry for a payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trialâ balance?
A. The sum of the credits will equal the sum of the debits.
B. The sum of the debits will exceed the sum of the credits by .
C. The sum of the debits will exceed the sum of the credits by .
D. The sum of the credits will exceed the sum of the debits by .
Answer:
A). The sum of the credits will equal the sum of the debits.
Explanation:
journal entry journal entry can be regarded as record of the business transactions which is made in a accountingbooks of a business.
journal entry that is documented properly will contains correct date as well as amounts to be debited and description of the transaction, it contain amount to be credited as well as a unique reference number.Note that "There is equal amount of credit as well as debit in a journal entry"
Trial balance can be regarded as report that give lists of balances of all general ledger accounts in a firm at a particular point in time, there is compilation of all ledger balance into debit as well as credit account column totals. As rule in trial balance, the total of the debit balances as well as credit balances that is been extracted from the ledger must tally with each other.
Typical Request and Response Messages
The purpose of many business messages is to make a request or to reply to previously received communication. Familiarize yourself with the organization of these messages so you can communicate your purpose and achieve a positive outcome.
Read the scenario:
The office manager asks you for advice on how to structure a request message with numerous questions.
What advice would you give?
A. Give an approximate date for the deadline in the body.
B. Place the deadline in the opening.
C. Set an end date to take action in the closing.
Read the following request message:
To: Customer Support
From: Helen Martin
Subject: Warranty Information for Netbook Computer
Dear Customer Service,
I need this information by noon tomorrow at the latest. My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I can’t find the warranty information anywhere. So I have a few questions.
Where is my warranty information? How long does it normally take to repair these machines? Do I have to mail the netbook to you, or can I bring it to your local repair shop?
Will you please answer these questions in a timely manner? Thank you in advance for your help.
Regards,
Helen Martin
1. Where do I find my warranty information?
Reason A: 2. How long does the average netbook repair take?
3. Do I need to mail in my netbook for repairs or bring it to your local repair shop?
Revision B: Where is my warranty information? How long does the average repair take? Do I have to mail in my netbook?
Revision C:
Where do I find the information?
How long does it take?
Can I take it to my local shop?
Which of the preceding revisions is the best revision for the body of this message?
A. Revision B
B. Revision C
C. Revision A
In addition to making requests, you will have to respond to requests in the business world.
Complete the following sentence with the dropdown menu.
Direct response messages might _______?
A. include long, flowery descriptions
B. use the "me" view
C. supply explanations and additional information
Many businesses use social media to communicate with customers. In order to make the most of social media, you should learn how to respond to various types of customer comments.
Read the scenario, and then answer the question.
You manage the social media presence of a company that manufactures travel apparel and gear. A customer posts an angry comment about a suitcase that failed to function properly after its first use. This is not the first complaint the product has received.
How should you respond to the customer?
A. Acknowledge the problem, and let the customer know that the company is working to rectify the situation.
B. Document and delete the comment. You don’t want news of the flawed product to spread.
C. Let the comment stand. No response is necessary.
Answer:
B. Place the deadline in the opening.
A. Revision B
B. Use the "me" view
A. Acknowledge the problem, and let the customer know that the company is working to rectify the situation.
Explanation:
Customer service is the most difficult task. If a customer is angry because of mis functioning of a product then concerns should be heard with patience and the company staff should try to resolve these issues and satisfy customer properly. One angry customer may take away 100 potential customers of a business.
A woman arrives at the clinic for a pregnancy test. The first day of her last menstrual period (LMP) was February 14, 2013. Her expected date of birth (EDB) would be: _________
a) November 21, 2013.
b) October 17, 2013
c) December 9, 2013
d) November 7, 2013
Answer:
a) November 21, 2013
Explanation:
The expected date of birth (EDB) would be calculated using Naegele's Rule and it is based on a normal 28 days menstrual cycle. The steps are as follows:
First, we need to identify the first day of the last menstrual period (LMP). Then we would count it back to three calendar months from that date. Finally, we would add 1 year and 7 days to that date.
In which case, the first day of LMP is February 14, 2013. Going back three months the date would be November 14, 2012. Finally, when we add 1 year and 7 days it would bring you to November 28, 2013, as the estimated due date.
Unearned revenues are liabilities because:______.
A. the customer may someday return items purchased for a refund.
B. no cash has changed hands.
C. the company is transferring them to another period for tax reasons.
D. goods or services have been paid for, but not yet provided to the customer.
nearned revenue is recorded on a company's balance sheet as a liability. It is treated as a liability because the revenue has still not been earned and represents products or services owed to a customer. ... Both are balance sheet accounts, so the transaction does not immediately affect the income statement
Nick sees a commercial for a Brand X clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy a Brand X t-shirt. This illustrates a common.......... of advertising.
Answer:
Critique of
Explanation:
Advertising
This simply is used to give notice, pass informations, for notification etc. from a known source and it is delivered through a mass-mediated channel that is set up to persuade the masses.
The 3 main components of successful advertising includes information, reasoning, and emphases.
The critiques of advertising:
There are several critiques of advertising. It includes the fact that the society is wasting resources, companies manipulate people's tastes, it hinders competition because it creates the perception that products are more differentiated than they are, allowing higher assumptions or markups.
The 4 types of advertising criticisms includes the effect, taste, role, and appropriateness.
MC Qu. 59 A company's flexible budget for... A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $20,000. The sales expected if the company produces and sells 20,000 units is (Do not round intermediate calculations):
Answer: $120,000
Explanation:
First find the selling price of the units.
= Sales / Number of units produced
= 96,000 / 16,000
= $6 per unit
If 20,000 units are sold, the sales would be:
= Number of units sold * selling price
= 20,000 * 6
= $120,000
a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $388,844,955, what interest expense would it recognize in its 2021 income statement
Answer:
$7,776,899
Explanation:
Calculation to determine what interest expense would it recognize in its 2021 income statement
Interest expense= $388,844,955 * 8% * (3 months/12 months)
Interest expense= $31,107,596.4 * 3/12
Interest expense= $7,776,899
Therefore the interest expense that would be recognize in its 2021 income statement is $7,776,899
