Neville Company issued $100,000 of 6%, 10 year bonds when the market rate of interest was 5%. The proceeds from this bond issue were $107,732 . Using the effective interest method of amortization, which of the following statements is true? Assume interest is paid annually
a. Interest payments to bondholders each period will be $6,464.
b. Interest payments to bondholders each period will be $5,000.
c. Amortization of the premium for the first interest period will be $1,226.
d. Amortization of the premium for the first interest period will be $613.
d
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The method of accounting for investments in equity securities in which the investor records its share of periodic net income of the investee is the
A) cost method B) market method C) income method D) equity method
The best place in a SWOT analysis to list the availability of credit for a firm seeking to expand through new construction of real estate is ________.
A. external opportunities B. external threats C. internal opportunities D. internal weaknesses E. internal strengths
Transfer of Instruments. In July 1988, Chester Crow executed a promissory note payable "to the order of THE FIRST NATIONAL BANK OF SHREVEPORT or BEARER" in the amount of $21,578.42 at an interest rate of 3 percent per year above the "prime rate in
effect at The First National Bank of Shreveport" in Shreveport, Louisiana, until paid. The note was a standard preprinted promissory note. In 1999, Credit Recoveries, Inc, filed a suit in a Louisiana state court against Crow, alleging that he owed $7,222.57 on the note, plus interest. Crow responded that the debt represented by the note had been canceled by the bank in September 1994, contending that, in any event, to collect on the note Credit Recoveries had to prove its legitimate ownership of it. When no evidence of ownership was forthcoming, Crow filed a motion to dismiss the suit. Is the note an order instrument or a bearer instrument? How might it have been transferred to Credit Recoveries? With this in mind, should the court dismiss the suit on the basis of Crow's contention?
A graphical device for depicting categorical data that have been summarized in a frequency distribution, relative frequency distribution, or percent frequency distribution is a(n) _____
a. histogram b. stem-and-leaf display c. ogive d. bar chart