On November 1, 2017, Austin Services issued $305,000 of five-year bonds with a stated rate of 12%
The bonds were issued at par, and Austin makes semiannual payments on April 30 and October 31. On December 31, 2017, Austin made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2018, when the first payment was made. What amount of interest expense was recorded for the period of January 1 to April 30, 2018?
A) $12,200
B) $36,600
C) $18,300
D) $29,280
A .Interest Expense = $305,000 x 12% x 4/12 = $12,200
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In the ethical maturity model, instilling in others a desire to develop ethical awareness and courage is referred to as:
a. Personal codes of ethics. b. Ethical motivation. c. Ethical leadership. d. Application of ethics to business situations.
Black Diamond, Inc., a manufacturer of carbon and graphite products for the aerospace and transportation industries, is considering several funding alternatives for an investment project. To finance the project, the company can sell 1,000 15-year bonds with a $1,000 face value, 7% coupon rate. The bonds require an average discount of $50 per bond and flotation costs of $40 per bond when being sold. The company can also sell 5,000 shares of preferred stock that will pay a $2 dividend per share at a price of $40 per share. The cost of issuing and selling preferred stocks is expected to be $5 per share. To calculate the cost of common stock, the company uses the dividend discount model. The firm just paid a dividend of $3 per common share. The company expects this dividend to grow at a
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In 2002, the following firms except one were awarded the Ig Nobel Prize for the development and application of the concept of “imaginary numbers” that are used in creative accounting in the business world, except
a. Enron b. ExxonMobil c. Arthur Andersen d. WorldCom
Describe the architectural components of a decision support system
What will be an ideal response?