On January 1 st 2012, Everhart Corporation, a calendar year company
issues $100,000, 5%, 5-year bonds dated January 1, 2012. The bond pays
interest semiannually on January 1 and July 1 . The bonds are issued
to yield 6%.
2.50% 3.00% 5.00% 6.00%
Present value of a
single sum for 5
periods 0.88385 0.86261 0.78353 0.74726
Present value of a
single sum for 10
periods 0.78120 0.74409 0.61391 0.55839
Present value of an
annuity for 5 periods 4.64583 4.57971 4.32948 4.21236
Present value of an
annuity for 10 periods 8.75206 8.53020 7.72173 7.36009

If Everhart Corporation uses the effective interest method to amortize any premiums or discounts on their
outstanding bonds, what will be the journal entries to record interest expense for calendar year 2013?
(15 points)

Abc company currently pays a dividend of $2.15 per share, d0=2.15. it is estimated that the company’s dividend will grow at a rate of 30 percent per year for the next 3 years, then the dividend will grow at a constant rate of 7 percent thereafter. the market rate of return is 9 percent. what would you estimate is the stock’s current price?

Data pertaining to the current position of forte company are as follows: cash $437,500 marketable securities 170,000 accounts and notes receivable (net) 320,000 inventories 700,000 prepaid expenses 42,000 accounts payable 240,000 notes payable (short-term) 250,000 accrued expenses 310,000 required: 1. compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. round ratios to one decimal place. 2. compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. consider each transaction separately and assume that only that transaction affects the data given. round to one decimal place. a. sold marketable securities at no gain or loss, 75,000. b. paid accounts payable, 135,000. c. purchased goods on account, 100,000. d. paid notes payable, 105,000. e. declared a cash dividend, 125,000. f. declared a common stock dividend on common stock, 45,000. g. borrowed cash from bank on a long-term note, 205,000. h. received cash on account, 130,000. i. issued additional shares of stock for cash, 635,000. j. paid cash for prepaid expenses, 15,000.

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?