Answer:
TRUE............................................................
Explanation:
Job seekers often spend a large amount of time writing their resumes and neglect to write quality cover letters. Thus, the given statement is true.
What is a resume?A curriculum vitae, often known as a resume or CV, is a document that a person creates and uses to highlight their educational history, professional experience, and accomplishments. Although there are many uses for resumes, they are most frequently employed to find new jobs. A standard resume includes a "summary" of relevant educational background and work history.
The resume is normally one of the first things a potential employer sees about a job seeker, along with a cover letter and occasionally an application for employment, and is commonly used to screen applicants, frequently followed by an interview. The curriculum vitae utilized for employment in the UK (and other European nations) is more comparable to the resume —a condensed, overview of one's educational background.
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Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry? A. $4,625 B. $3,960 C. $5,290 D. $4,750 E. $4,825 57,1 17.
Answer:
A. $4,625
Explanation:
Items Amount
Sales $925,000
Uncollectible percentage 0.50%
Amount of Bad debts expense $4,625
($925,000 * 0.50%)
The amount of the bad debts expense adjusting entry should be considered as the option A. i.e. $4,625.
Calculation of the amount of the bad debts expense:
Since
Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000.
And, there is uncollectible accounts are estimated to be 0.5% of sales
So, here the bad debt expense should be
= 0.50% of $925,000
= $4,625
hence, the option a is correct.
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The employment process is carried out by which department?
Answer:
The hiring process is the process of reviewing applications, selecting the right candidates to interview, testing candidates, choosing between candidates to make the hiring decision and performing various pre-employment tests and checks.
Explanation:
The employment process is carried out by Human Resources (HR) division manages the hiring procedure is department.
The HR department is in charge of handling the entire employee life cycle, which includes hiring, onboarding, training, terminating, and providing benefits to employees.
Reviewing applications, identifying the best applicants for interviews, testing candidates, deciding amongst candidates to hire, and carrying out different pre-employment exams and inspections are all part of the hiring process.
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1.Under the Uniform Commercial Code, contracts for the sale of goods are subject to an implied promise, called a(n)____, that the good are suitable for the specific purpose for which they are bought.
2.Each state has a statue of____ that outlines the requirements for forming each contract.
3.The Uniform Commercial Code controls contracts
4.Generally, a state's statute of frauds will cover____ types of contracts.
5.A(n) _________ contract is formed when the executor or administrator of a person's estate promises to pay off owed debt with their personal funds
6.When one party in a contract agrees to release the other party from performance and enters into a new contract with another party, this is known as
7.if the sales price for an item is_____ or more, the contract should be in writing.
8.On March 1, a woman sees a car with a "for sale" sign and telephone number to call. She investigates the car and its value. She telephones and states she will pay $4000 if she can have the car by March 31. Her telephone conversation with the seller is
9.The Uniform Commercial Code applies to contract issues related to
10.____ is the item that's bargained for in a case of agreement.
Answer:
1.implied warranty of fitness for particular use
2.frauds
3.for the sale of goods
4.six
5.agreement to answer for a debt of decedent
6.novation
7.$500
8.an offer
9.the sale of goods
10.Consideration
Explanation:
UCC comprises clauses for product sales, commercial paper, bank deposits and collections, bulk transfers, investment securities, and secured transactions.
What is the Uniform Commercial Code?All business transactions in the United States are governed by the Uniform Commercial Code (UCC), a comprehensive body of legislation. It is a uniformly enacted state law rather than a federal one.
A variety of commercial contracts, including those involving the sale of commodities, lease of products, use of negotiable instruments, banking transactions.
Letters of credit, papers of title for goods, investment securities, and secured transactions, are governed by the Uniform Commercial Code (UCC).
Therefore, there is an implicit warranty of fitness for a particular application, ensuring that the goods are appropriate for the intended use.
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what are expenses from those:
1. premises
2. Machinery
3. Rent received
4. Advertising
5. Motor Vehicle
6: Motor expense
Economists occasionally speak of "helicopter money" as a short-hand approach to explaining to increases in the money supply. suppose the chairman of the federal reserve flies over the country in a helicopter dropping 10,000,000 in newly printed $100 bills (a total of $1 billion). by how much will the money supply increase if, holding everything else constant
Answer and Explanation:
a. In case when the new bills are kept by the people so the supply of money would be increase by a very similar amount as it was dropped off the plane. That's because the banking is not in the image, so there is no impact on the money multiplier.
b. If the amount is deposited in the bank, the cash supply would rise with the money multiplier being taken into account. Money Multiplier = Deposited currency / reserve ratio. The overall supply of money that will raise be 1 billion / 0.1.
c.Again, if a 100% reserve banking is exercised by the bank, so the boosted money supply would be the same value as it has been deposited.
d. If half of the value is held by the public and half of the value is deposited with the bank at 10% of the reserves, the supply of money rises by half of the amount which is held by the public in addition of half of the value / reserve ratio that is 10%.
Imagine that Art’s Flower Shop has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.
Answer:
1)B. that the printer's conduct was gross negligence
2)D. No, because Art's is the party trying to enforce the contract
Explanation:
Imagine that Art’s Flower Shop has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.
1)In order to win its case, Art's will have to prove __________
A. that its business suffered hugely when the yellow pages ad was omitted
B. that the printer's conduct was gross negligence
C. that flowers are important to the public welfare
2)If the yellow page printer does not have an advertising license, can it argue that it is not liable because it had no contract at all with Art's? ______________.
A. Yes, because it had no license
B. No, because the license is merely to raise money for the city
C. Yes, unless it had submitted an application for license and the application was pending
D. No, because Art's is the party trying to enforce the contract
D. No, because Art's is the party trying to enforce the contract
We are informed about an Art’s Flower Shop that has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.
1) In order to win its case, Art's will have to prove that the printer's conduct was gross negligence.
gross negligence is when something, legal obligation, someone, lack maintainance, care. Or there is voluntary disregard. Therefore, if he want to win the case he has to prove that the printer's conduct was gross negligence.
2)If the yellow page printer does not have an advertising license, can it argue that it is not liable because it had no contract at all with Art's?
There is no argument that can be won here because, the enforcement of the contract is from the Art itself.
Madeline is a Logistics Manager for a private company, William is a Safety Inspector for OSHA, and Fred moonlights as a Limousine and Taxi Driver. Which best explains how these individuals are employed? Madeline is employed by the federal government, William is employed by a shipping company, and Fred is self-employed. Madeline is self-employed, William works for the federal government, and Fred is employed by a shipping company. Madeline is employed by a shipping company, William works for the federal government, and Fred is self-employed. Madeline is employed by a shipping company, William is self-employed, and Fred works for the federal government
Answer:
Madeline is employed by a shipping company, William works for the federal government, and Fred is self-employed.
Explanation:
Madeline is a logistic manager. Her job revolves around planning how goods are sourced, stored, and transported safely to their intended destined. She is most likely working in the transport and logistics industry. A shipping company is in this industry.
William is a Safety Inspector for OSHA, which is a regulatory agency for the United State Government, under the department of labor. Its role is to promote and advocate for employee's health and safety issues in the workplace. William is, therefore, a government employee.
Fred is self-employed. He often shifts from being a limousine driver to a taxi driver. He can moonlight because he is not an employee of a particular company.
Answer:
the answer is C
ion:
You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can’t get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper.
Answer and Explanation:
The computation is shown below:
Fixed cost is
= $500,000 + $1,000,000
= $1,500,000
And, the marginal cost is
= $0.25 + $0.10
= $0.35 per paer
Now
as we know that
AFC = FC ÷ Q
Now for At 1,000,000 papers,
AFC is
= 1,500,000 ÷ 1,000,000
= $1.50/mo
At 800,000 , it would be
AFC = 1,500,000 ÷ 800,000
= $1.875/mo
MC = $0.35 per paper and the same is not changed
Now for break even, the average total cost is
ATC = AFC + AVC
ATC = FC ÷ Q + VC ÷ Q
VC = MC × Q
ATC = FC ÷ Q + MC
ATC = FC ÷ Q + 0.35
At Q = 1,000,000,
ATC = 1.50 + 0.35
ATC = $1.85
At Q = 800,000 , it would be
ATC = 1.875 + 0.35
= $2.225
As it can be seen that
The AFC changes from 1.50 to 1.875 which shows an increment of 0.375.
The MC remains constant or same at 0.35 as the printing and delivery costs per paper are remain same
And, The minimum amount that we must charge to break even rises i.e. from 1.85 to 2.225. That is a rise of 0.375
If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens Rises from 300 rooms per night to 350 rooms per night. Therefore, the income elasticity of demand is positive , meaning that hotel rooms at the Triple Sevens area normal good .
Answer:
True
Explanation:
income elasticity of demand = % change in quantity demanded / % change in income
income elasticity of demand = 16.7% / 20% = 0.83, since it is positive, then they are normal goods but not luxury goods since the income elasticity of demand is ≤ 1.
If IED is negative, that means that a good is an inferior good, since the more you earn, the less you consume.
I want to buy a car in one year by saving at least $500 a month from my paycheck for the next year. This is a
goal.
Obroad
SMART
O neither
Next
Submit
Mark this and return
Help
Answer:
SMART goal
Explanation:
The term SMART as used in an objective setting is an abbreviation for Specific, Measurable, Achievable, Realistic, and Timely. It describes a goal that has all the components of the abbreviations. The goal has to have
Specific: Well defined, clear, and unambiguousMeasurable: With particular criteria that evaluate progress made in achieving the goalAchievable: Attainable and not impossible to accomplishRealistic: Within reach and relevant to lifeTimely: Has a clearly defined timeline, including a starting date and a target date.The goal, as stated in the sentence, meets the above criteria. The objective is clear; progress can be determined; it is achievable and realistic. The timelines are well defined.
True or False: when writing a check, it is not necessary to fill in the Memo line. *
True
False
Answer:
true
Explanation:
It's not essential that you fill out this field, since it isn't required to cash or deposit the check. But entering a memo can help you and the recipient keep clear records.
Jonathan is a photographer. He has been hired by a company to shoot an advertisement for their product. Which role does Jonathan play in the advertising process for the product?
Jonathan plays the role of a
in the advertising process for the product.
who ever gets this right will be brainlist and 10 points
Answer: vendor
Explanation: right on Plato
Answer:vendor
Explanation:
Consider the case of Demed Inc.: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Demed Inc. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Demed Inc.’s bonds? Value YTM YTC If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Demed Inc.’s bonds? 18 years 13 years 5 years 8 years If Demed Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?
Answer:
A) YTM = 7.64%
B) YTC = 7.36%
C) 8 years
D ) 7.64%
Explanation:
Annual coupon bond rate = 9%
number of year left until maturity = 18
par value of Bonds( FV ) = $1000
current market price( PV ) = $1130.35
Demed can call bonds in 8 years at a call price of $1060
A) what is the Bonds' YTM ( yield to maturity )
we calculate the interest per period ( PMT )
= ( Fv * Annual coupon bond rate) / number of compounding per year
= (1000 * 9% ) / 1 = $90
next we calculate number of compounding periods till maturity ( NPER )
= number of years to maturity * number of compounding per year
= 18 * 1 = 18
using excel formula = RATE ( NPER,PMT,PV,FV) )
hence yield to maturity = 7.64%
B) what is YTC ( yield to call )
we calculate the interest per period ( PMT )
= $1000 * ( coupon rate / number of compounding per year )
= $1000 * ( 9% / 1 ) = $90
next we calculate the number of compounding periods till sell
= 8 * 1 = 8
using excel formula = RATE ( NPER,PMT,PV,FV) )
Hence the YTC = 7.36%
C) Bonds will be called at 8 years and this is because the YTC is less than YTM
D ) The coupon rate for the bonds to be issued at par, is 7.64%
Can someone help me solve this like atleast give 50$ 75$ I’ll give you 100 points or brainlist I’ll work for the 100 points don’t answer if wrong
I do my lil dance dance
They do it nasty
She tell me
Explain two problems that Walmart might have in the future if it opens its own stores in India.
Answer:
Employee and labor relations. Walmart has faced issues with its employees involving low wages, poor working conditions and inadequate health care. Approximately 70% of its employees will leave in an year
Explanation:
Workers are responsible for the production of goods in a business,
but business owners exploit their workers.
A) Workers should revolt,
B) take over the businesses,
C) set up a government to run the economy on their behalf.
Which political thinker would be most likely to agree with this statement
Answer:
Karl Marx
Explanation:
Many people only remember Marx for his theories about extreme socialist governments that eventually led to communism in other parts of the world. But he actually did understand how capitalism worked, added value theories, the way capital ($) worked, and he believed that capitalism was a necessary stage in the development of society. As an economist he was brilliant, but then he turned into a sort of philosopher.
Problems started when he said that after capitalism had led to an unprecedented economic growth, then it would be time for the workers (proletariat) to take over and lead economic systems. This rule by the working class would eventually lead to a fair society where everyone would be able to prosper.
Marx's economic theories are utopian, they call for a nearly perfect world, but humans aren't perfect. If you like Star Trek, you should recall that the world runs just like Marx wanted to. The economy and living conditions are based solely on your work, that is why the world was able to unite under one single federation. But as much as I would really like to travel at warp speed, it is not possible, and I really doubt that Marx's ideas are possible either.
Consumer behavior is the way that forces shape people's
A. goods and services
B. place and time utility
C. culture and society
D. activities related to buying
Answer:
D. activities related to buying
Explanation:
Consumer behavior study how individuals and organizations select the goods and services they opt to buy. It tries to understand consumers' motivation, psychology, and behavior as they select preferred goods and services. Consumer behavior is broad and complex. Some of the answers it seeks are
1. How consumers think and choose between various options
2. The behavior of consumers while shopping
3. How the environment (peers, culture, media, social media) influence social media
You should be certain that your cover letter duplicates the exact same information found in your résumé. Please select the best answer from the choices provided
T or F
Answer:
false
Explanation:
A cover letter is supposed to help you get the interview by reinforcing the things described in your resume.
A cover letter is supposed to help you get the interview by reinforcing the things described in your resume. Thus, the given statement is false.
What is a cover letter?A letter of introduction that is connected to or is included with another document, such as a resume or curriculum vitae, is known as a cover letter, inspiration letter, motivating letter, or letter of motivation. In addition to their curriculum vitae or employment applications, job applicants usually include a cover letter to introduce themselves to potential employers and discuss their suitability for the open positions.
Employers may use well-crafted and unique cover letters as one tool for weeding out candidates who are not sufficiently interested in their openings or lack the essential foundational abilities. In order to apply for an internship, students are frequently required to submit a cover letter. Examples of extracurricular and academic experiences have to be included in these cover letters.
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Which benefit is shared by both Monopolies and Oligopolies?
A. They drive down prices by competing for the same customers.
B. They are highly regulated by the government groups that control them.
C. They have Access to enough capital to operate in high-cost industries.
D. They provide consumers with a wide range of choices for products.
APEX
Answer:
C. They have Access to enough capital to operate in high-cost industries.
Explanation:
Both monopolies and oligopolies have some common traits, and one of the most important ones is that they all have a large market power. Their power comes from high entry barriers to the industries in which operate in. Generally these industries are high-cost industries, e.g. it costs billions to build the electric grid of a large city. These high entry barriers decrease or virtually eliminate the possibility of competition.
Answer: They can Harm Consumers by fixing prices.
Explanation:
Just took the quiz on A_pex :) It may not be one of his choices but it could be yours :) Hope this helps, mark it the brainliest pls !
Open market operations refer to which action by a central bank?
A. Regulating the amount of money banks hold in reserve
O B. Changing the price banks pay to borrow money
O C. Buying and selling treasury securities
O D. Adjusting interest rates on stock markets
Answer:
B so it said 20 characters tooblong and dont copy th rokffkmf
Answer:
C: Buying and selling treasury securities
Explanation:
Apex, hope it helps ;)
Which of these career clusters sound most interesting to you? Check all that apply.
Finance
Government and Public Administration
Health Science
Hospitality and Tourism
Human Services
Information Technology
Answer:
buddy thats ur opinion
Explanation:
same as up
The most interesting career clusters are given below.
FinanceGovernment and Public AdministrationHealth ScienceWhat is a Career Cluster?A career cluster is group of careers that proportion commonplace functions. If you like one job in a cluster, you can like others in that cluster as nicely.
What are the top career clusters?Agriculture, Food & Natural Resources.Architecture & Construction.Arts, Audio/Video Technology & Communications.Business, Management & Administration.Education & Training.Finance.Government & Public Administration.Health Science.Learn more about career clusters here https://brainly.com/question/24613213
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does non traditional careers for men mean job for women?
and does non traditional careers for women mean job for men?
Which function is used to add a range of cells
Explanation:
You can use AutoSum to quickly sum a range of numbers in a column or row
You earn $50,000 per year, and paid 10 percent in taxes this year. The government increased the tax rate to 20 percent for next
year. Which amount will you pay in taxes next year?
A) $1,000
B) $2.000
C) $5,000
D) $10.000
Answer:
D. $10,000
Explanation:
The answer is D because as you earn $50,000 every year, and for the next year the tax rate is 20%, 20% of $50,000 is $10,000. Hope it helps!
Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 1,500 Materials costs $ 7,900 Conversion costs $ 3,200 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 7,400 Units completed and transferred to the next department during the month 6,600 Materials costs added during the month $ 111,000 Conversion costs added during the month $ 84,100 Ending work in process inventory: Units in ending work in process inventory 2,300 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 % The total cost of units completed and transferred from the first processing department to the next processing department during the month is closest to
Answer:
$174,781.20
Explanation:
I will do the calculations in 3 stages. You won`t go wrong if you follow these.
Equivalent UnitsTotal Unit CostTotal Cost to be transferred to next departmentCalculation of Equivalent Units of Production with respect to Raw Materials and Conversion Costs
1. Raw Materials
Ending Work In Process Inventory (2,300 × 70 %) = 1,610
Completed and Transferred to Finished Goods (6,600 × 100%) = 6,600
Equivalent Units of Production with respect to Raw Materials = 8,210
2. Conversion Costs
Ending Work In Process Inventory (2,300 × 55 %) = 1,265
Completed and Transferred to Finished Goods (6,600 × 100%) = 6,600
Equivalent Units of Production with respect to Conversion Costs = 7,865
Calculation of Total Unit Cost of Production with respect to Raw Materials and Conversion Costs.
Unit Cost = Total Cost (Beginning + Current) ÷ Total Equivalent Units
1. Materials
Unit Cost = ( $ 7,900 + $ 111,000) ÷ 8,210
= $14.482 (3 decimal places)
2. Conversion Cost
Unit Cost = ( $ 3,200 + $ 84,100) ÷ 7,865
= $12.00 (3 decimal places)
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $14.482 + $12.00
= $ 26.482
Calculation of total cost of units completed and transferred from the first processing department to the next processing department
Total Cost = Units Completed and Transferred × Total Unit Cost
= 6,600 × $ 26.482
= $174,781.20
You are going into business with 4 equal partners (not counting yourself). If in 6 years, the business is making a profit of $1,000,000, what is your share?
A. $180,000
B. $190,000
C. $200,000
D. $210,000
Answer:
The answer is C
Explanation:
I got the answer right lol
Equal amount in 5 division of $1,000,000 is $200,000 so our profit is $200000 therefore option (C) will be correct.
What is the arithmetic operator?Arithmetic operators are four basic mathematical operations in which summation, subtraction, division, and multiplication involve.,
Division = divide any two numbers or variable called division.
For example 4/8
Profit of business = $1,000,000
Total partner = 4 + 1(ourselve) = 5
Share per partner = Profit of business / total partner
Share per partner = 1000000 / 5 = $200,000
Hence "Equal amount in 5 division of $1,000,000 is $200,000 so our profit is $200000".
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Harmon recently quit his job that he had worked at for the past 10 years in
order to start his own business, a company that specializes in pet care
services. He has a lot of good ideas, but doesn't have a firm business plan. A
month after starting his new company, he applied for a loan at a bank so that
he could buy a new office space. Which of the following is likely to be true in
this situation?
A. The bank will not care about the lack of business plan because
he's only been in business for a month.
B. The bank will be slow to lend to him because of how long he was
at his previous job.
C. The bank might be slow to lend to him because of the lack of a
firm business plan.
D. Harmon only needs to show the bank his record of income from
his old job, not his new business.
The correct option is C. The bank might be slow to lend to him because of the lack of a firm business plan is likely to be true in this situation because It is challenging for banks to innovate and begin using data other than credit scores to assess risk because of tougher rules.
What are the common reasons encountered for rejecting a loan?The most frequent causes of denial are a low credit score or poor credit history, a high debt-to-income ratio, a history of unstable employment, an income that is too low for the desired loan amount, or the absence of crucial documents or information in your application.
Banks have become more cautious about the level of risk in their investment portfolio in the wake of the recession due to increasing government regulations. Because they are fundamentally riskier than huge organizations, banks are reluctant to lend to small enterprises.
Thus, Since banks don't use as much data as alternative lenders do, it is considerably more difficult to obtain a business loan from them if you have bad credit.
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Acomputer game that can be purchased online and played right'away has good utility
A. Form
B. Information
C. Value
D. Time
(Bond valuation) You are examining three bonds with a par value of $1 comma 000 (you receive $1 comma 000 at maturity) and are concerned with what would happen to their market value if interest rates (or the market discount rate) changed. The three bonds are Bond Along dasha bond with 5 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. Bond Blong dasha bond with 10 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. Bond Clong dasha bond with 15 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. What would be the value of these bonds if the market discount rate were a. 8 percent per year compounded semiannually? b. 5 percent per year compounded semiannually? c. 15 percent per year compounded semiannually? d. What observations can you make about these
Answer:
Bond A, 5 years to maturity, semiannual coupons, 8%
Bond B, 10 years to maturity, annual coupon, 8%
Bond C, 15 years to maturity, semiannual coupon, 8%
a) market rate 8% semiannual
Bonds A and C will be worth $1,000 (par value)
price of bond B:
effective interest rate = 1.04² - 1 = 8.16%PV of face value = $1,000 / 1.04²⁰ = $456.39PV of coupon payments = $80 x 6.66192 (PV ordinary annuity factor, 8.16%, 10 periods) = $532.95market price = $989.34
b) price of bond A:
PV of face value = $1,000 / 1.025¹⁰ = $781.98
PV of coupon payments = $40 x 8.75206 (PV ordinary annuity factor, 2.5%, 10 periods) = $350.08
market price = $1,132.06
price of bond B:
effective interest rate = 1.025² - 1 = 5.0625%PV of face value = $1,000 / 1.025²⁰ = $610.27PV of coupon payments = $80 x 7.69817 (PV ordinary annuity factor, 5.0625%, 10 periods) = $615.85market price = $1,226.12
price of bond C:
PV of face value = $1,000 / 1.025³⁰ = $476.74
PV of coupon payments = $40 x 20.93029 (PV ordinary annuity factor, 2.5%, 30 periods) = $837.21
market price = $1,313.95
c) price of bond A:
PV of face value = $1,000 / 1.075¹⁰ = $485.19
PV of coupon payments = $40 x 6.86408 (PV ordinary annuity factor, 7.5%, 10 periods) = $274.56
market price = $759.75
price of bond B:
effective interest rate = 1.075² - 1 = 15.5625%PV of face value = $1,000 / 1.075²⁰ = $235.41PV of coupon payments = $80 x 4.91292 (PV ordinary annuity factor, 15.5625%, 10 periods) = $393.03market price = $628.44
price of bond C:
PV of face value = $1,000 / 1.075³⁰ = $114.22
PV of coupon payments = $40 x 11.81039 (PV ordinary annuity factor, 7.5%, 30 periods) = $472.42
market price = $586.64
d) If the market rate is lower than the coupon rate, then the bonds will sell at a premium. The longer the maturity date, the larger the variations in market price due to different interest rates. E.g. the 15 year bond is more affected than the 5 year bond.
Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on deposit at the close of business on May 31. The May 31 bank statement lists $110 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $5,700. May 31 cash receipts of $6,300 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $410 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $580 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
Answer:
Cash account reconciliation:
Cash account balance $27,700
subtract bank fees ($110)
subtract NSF check ($580)
Reconciled balance $27,010
Bank account reconciliation:
Bank account balance $26,000
subtract outstanding checks ($5,700)
add deposits in transit $6,300
add error with Smith Company check $410
Reconciled balance $27,010