Supper Accountants Inc plans to sell a bond to finance its plant. The face value of the bond is $100,000 and it will be due in 5 years. The bondis offered at 6% annual interest rate, although the market rate is 7%. Supper Accountants is expected to receive $95,900 in cash when thesales is completed. How much interest expense should Supper Accountants record for the first year?6,0005,7547,0006.173

Bonds payable is one of liability being incurred in business. This is a promise to pay amount later.…

Answered: Supper Accountants Inc plans to sell a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Skies Bank of Florida issues a three-month (90-day) negotiable CD in the amount of $20 million to ABC Insurance Company at a negotiated annual interest rate of 2.75 percent (360 day basis). Calculate the value of this CD account on the day it matures and the amount of interest income ABC will earn. What interest return will ABC Insurance earn in a 365 day year? write the laws pleas
A bank lends you $250,000 (loan amount is $250,000) at a 7.25% nominal interest rate. The loan requires monthly interest-only payments for 6 months, followed by equal monthly payments of principal and interest based on a 25 year amortization schedule. The loan matures in 5 years and a balloon payment is due at that time. What is the total interest dollar amount paid by the end of month 60? Round all dollar calculations and your final answer to the nearest penny.
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Please do both correctly, I'll rate the answerQuestion:(i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate?(ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount? Note:- please dont use pen paper

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