Answer Happy

Neville Longbottom Limited issued 6-year, Face Value $250,000, 7% bonds on January 1, 2021. The bonds pay interest every December 31, with the principal to be re-paid on maturity date. The market interest rate on the bonds is 6%. What were the net proceeds from the bond issue? a) $ 250,000 b) $ 262,293 c) $ 267,500 d) $ 238,084
A company has revenues of $50,000, unearned revenues of $30,000, wage expense of $20,000, depreciation expense of $12,000, interest expense of $8,000, prepaid interest of $1,000 and income tax expense of $3,000. Based on the preceding: a) The company has operating income of $9,000 and net income of $6,000 b) The company has operating income of $47,000 and net income of 836,000 c) The company has operating income of $10,000 and net income of $6,000 d) The company has operating income of $18,000 and net income of $7.000