Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortizationschedule from issuance until maturity:CashEffectiveDecrease inOutstandingDateinterestinterestbalancebalance1/1/20212$207,0206/30/2021247,000246,2112$789206,23012/31/20217,0006,187813205,4176/30/20227,0006,163837204,58012/31/20227,0006,137863203,7176/30/20237,0006,112888202,82912/31/20237,0006,085915201,9136/30/20247,0006,057943200,97112/31/20247,0006,029971200,000What is the annual effective interest rate on the bonds?A) 3% B) 3.5%C) 6% D) 7%

Formula: Effective Int rate = Interest / Outstanding balance x 100

Cash Effective Decrease in Outstanding Date interest interest balance balance 1/1/2021 $ 207,020 6/30/2021 $ 7,000 2$ 6,211 $ 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 7,000 6,057 943 200,971 6/30/2024 12/31/2024 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds?

Cash Effective Decrease in Outstanding Date interest interest balance balance 1/1/2021 $ 207,020 6/30/2021 $ 7,000 2$ 6,211 $ 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 7,000 6,057 943 200,971 6/30/2024 12/31/2024 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Present Value $ 400 2,091 33,105 32,800 Years Interest Rate 12 % 10 % 15% 22 % Future Value $ 1,255 3,850 388,620 202,748
Find the percentage increasing or decreasing of total fixed liabilities of 2003 and 2004
Acc
Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) 8,305.13
None
QS 17-4 (Algo) Horizontal analysis LO P1 Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) Short-term investments Accounts receivable Notes payable Percent Change: = Short-term investments Accounts receivable Notes payable $ Current Year Prior Year $ 377,232 99,828 0 $ 236,026 103,326 90,624 Horizontal Analysis - Calculation of Percent Change Numerator: Current Year 377,232 $ 99,828 0 Prior Year 236,026 103,326 90,624 Denominator: Dollar Change Percent Change % % %
What did I do wrong ?
Janine is 40 and has a good job at a biotechnology company. Janine estimates that she will need $953,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $25,500 a year. (She expects that Social Security will pay her an additional $18,500 a year.) She currently has $5,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65. How much will Janine's IRA be worth when she needs to start withdrawing money from it when she retires? Use Exhibit 1-A. (Round time value factor to 3 decimal places and answer to 2 decimal places.) Future value of IRA
Subject:
Accounting
EXERCISE I5 Lincoln Company sells its products in returnable containers.The customers are given a period of 2 years from the year of delivery to return the containers. Containers not returned within the prescribed period are considered sold at the amount of deposits forfeited. At January 1,2020, the balance of the account Refundable Deposits on Returnable Containers is P 250,000, consisting of the following: For containers delivered to customers in : 2018 P 100,000 2019 150,000 During 2020, the company received additional deposits of P 200,000 for containers delivered to customers during 2020 for return of containers amounted to P 267,000,as follows: Deliveries in 2018 P 82,000 Deliveries in 2019 T10,000 Deliveries in 2020 75,000 REQUIRED: Compute the balance of Refundable Deposits for Returnable Containers at December 31,2020.