Stech Co. is issuing $9 million 12% bonds in a private place…
Stech Co. is issuing $9 million 12% bonds in a private placement on July 1, 2020. Each $1,000 bond pays interest semi-annually on December 31 and June 30 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds?
Read DetailsWhat would you pay for an investment that pays you $40,000 a…
What would you pay for an investment that pays you $40,000 at the end of each year for the next ten years and then returns a maturity value of $600,000 after ten years? Assume that the relevant interest rate for this type of investment is 8%.
Read DetailsWellington Corp. has outstanding accounts receivable totalin…
Wellington Corp. has outstanding accounts receivable totaling $1.27 million as of December 31 and sales on credit during the year of $6.4 million. There is also a debit balance of $6,000 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
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