Harvard inc. issues $4.0 million, 5-year, 8% bonds at 102, with interest payable on january 1. the straight-line method is used to amortize bond premium.

prepare the journal entry to record the sale of these bonds on january 1, 2022. (credit account titles are automatically indented when amount is entered. do not indent manually.)

date

account titles and explanation

debit

credit

jan. 1

cash

enter a debit amount

bonds payable

$4,000,000

premium on bonds payable

enter a credit amount

prepare the journal entry to record interest expense and bond premium amortization on december 31, 2022, assuming no previous accrual of interest. (credit account titles are automatically indented when amount is entered. do not indent manually.)

List three major educational changes over the past 100 years that have positively influenced students. explain why these changes were influential.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity. calculate the cost of new stock using the dividend growth approach. what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics. each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings. equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.