The legal contract between the issuing corporation and the bondholders is call the bond indenture.

An annuity is a series of equal payments occurring at equal intervals.

A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?

Keisha Co. borrows $215,000 cash on December 1 of the current year by signing a 90-day, 8%, $215,000 note. On what date does the note mature and what is the total amount of interest expense for the note?

An employee earned $62,200 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of total unemployment taxes the employee must pay?

On August 1, a $34,800, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $13,260.60. The entry to record the first payment on July 31 would include:

A corporation borrowed $125,000 cash by signing a 5-year, 9% installment note requiring annual payments each December 31 of $32,136. What journal entry would the issuer record for the first payment?

Keith Riggins expects an investment of $128,392 to return $15,000 annually for several years. If Riggins earns a return of 8%, how many annual payments will he receive?

Morgan Company issues 9%, 20-year bonds with a par value of $840,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is

A company had a beginning balance in retained earnings of $44,500. It had net income of $7,500 and declared and paid cash dividends of $6,000 in the current period. The ending balance in retained earnings equals: