Amortization‚ What Is It? Amortization actually has different meanings depending on what it is being related to. Amortization is chiefly used in loan repayments‚ such as a mortgage loan‚ and in sinking funds. In this situation‚ amortization is the distribution of a single lump-sum cash flow into many smaller cash flow installments‚ as determined by an amortization schedule. Unlike other repayment models‚ each repayment installment consists of both principal and interest. Payments are divided
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account $550‚000 2)During 2008‚ PK Co. purchased 2‚000‚ $1‚000‚ 9% bonds. The carrying value of the bonds at December 31‚ 2010 was $1‚960‚000. The bonds mature on March 1‚ 2015‚ and pay interest on March 1 and September 1. PK sells 1‚000 bonds on September 1‚ 2012‚ for $988‚000‚ after the interest has been received. PK uses straight-line amortization. The gain on the sale is Discount amortization: $40‚000 × 8/50 = $6‚400 ($1‚960‚000 + $6‚400) ÷ 2 = $983‚200; $988‚000 – $983‚200
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Identify the following in the essay: 1. Thesis – please underline using a straight line 2. Topic Sentences – please underline using a wavy line 3. Support – underline the support for each topic sentence – use a dotted line 4. Conclusion – identify the thesis restatement – using a straight line 5. Write out each of the three body paragraph topic sentences a. Under each topic sentence‚ summarize (in point form) the support for each topic sentence Corporal Punishment: Psychological Assault
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Taja Charrier LSP 120 11/4/13 Activity 12 1. Suppose that you deposit $500 in a bank that offers an annual percentage rate of 6.0% compounded annually. a. What is your account balance after one year? 530 b. What is your account balance after 10 years? 895.42 2. How long will it take your money to triple at an annual percentage rate of 8% compounded annually? 14.27 years 3. Suppose that you deposit $750 in a bank that offers an annual percentage rate of 4.0% compounded monthly. a
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Discount Cruises - Save Your Cash - Book Brilliant! Going for a cruise vacation is an extraordinary choice as you can anticipate a stunning time. Not at all like customary vacations‚ has a cruise trip guaranteed a totally unprecedented affair that you are sure to savor for whatever remains of your life. The uplifting news is that few cruise lines are putting forth discount that offer an entire scope of intriguing exercises and administrations on board a noteworthy boat. It is helpful and simple
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E14-4 (Entries for Bond Transactions—Straight-Line) Foreman Company issued $800‚000 of 10%‚ 20-year bonds on January 1‚ 2011‚ at 102. Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following. a. The issuance of the bonds. b. The payment of interest and the related amortization on July 1‚ 2011. c. The accrual of interest and the related
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Amortization (or amortisation) is the process of decreasing‚ or accounting for‚ an amount over a period. When used in the context of a home purchase‚ amortization is the process by which loan principal decreases over the life of a loan. With each mortgage payment that is made‚ a portion of the payment is applied towards reducing the principal‚ and another portion of the payment is applied towards paying the interest on the loan. An amortization table shows this ratio of principal and interest and
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Cash Discount on Sales Cash discount is the discount offered by seller for paying cash early. Cash discount is only offered on credit sales where the customers do not pay at the time of sale but promise to pay latter. There are two methods of accounting for sales that offer cash discounts; the gross method and the net method. These two methods are explained with the help of the following example: Example Suppose Company A sells certain goods at a price of $4‚400 with terms of payment
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What are Yield to Maturity (YTM) and Yield to Call (YTC)? By calculating the present and future value of bonds‚ managers can make sound decisions about their potential strengths and weaknesses as investments. Answer the following questions in this week’s Discussion 2 thread: 1. What terms (or inputs) are needed to calculate yield to maturity (YTM)? How does this compare to calculating yield to call (YTC)? To calculate the YTM you will need to use Annual Interest‚ Par value‚ Market Price
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Straight to College or Straight to Work? In Rawlings “college is a commodity” and Norman Cousins “Top Three Cheapest Community Colleges in the United States” both summaries the authors describe their feelings about college and what they feel is the best for students now. Rawlings views on how college is to students in present time is‚ college is what you put into it‚ not what you get out of it. For Norman Cousins community college could be cheap for you to peruse the education you would like to
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