On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The amount of interest expense to be recorded on June 30 is $25,000.
Answer the following statement true (T) or false (F)
False
Interest Expense = Cash Paid + Discount Amortization
Interest Expense = ($500,000 × 10% × 6/12) + ($26,155/16) = $26,634.69
You might also like to view...
Genosha Limited ordered 500 pairs of jeans from Jeans Co a company based in Sydney Australia. JeansCo's standard ordering form on which the order was made, provides that payment must be made within 10 days of the date of delivery
Genosha received the jeans but owing to financial difficulty, has been unable to complete the payment of the purchase price. Which of the following statements most accurately describes JeansCo's best legal position? A) It can seek punitive damages against Genosha. B) It can cancel the contract and sue for the recovery of the goods C) It can sue for the recovery of the goods but cannot cancel the contract D) It can seize the jeans as the law allows sellers some margin of self help. E) It can sue Genosha for damages for breach of contract equivalent to the outstanding amount of the purchase price.
Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from
A. interest to awareness. B. "I want it" to "I like it." C. "I like it" to "I want it." D. feeling to thinking. E. action to desire.
When deciding how far to carry the segmenting process,
A. cost considerations encourage less aggregating. B. segmenters should consider the demographic attributes of the target customers. C. profit should be the balancing point-determining how unique of a marketing mix the firm can offer to some target market. D. it is easier to develop effective marketing mixes for larger, more heterogeneous segments. E. the threat of potential competitors suggests more aggregating.
The firm's best financial structure is determined by finding the capital structure that minimizes the
firm's cost of capital. Indicate whether the statement is true or false