Answer:
Please refer to the below for Journal entries
Explanation:
The journal entries are seen below
1. Cash A/c Dr $58,523
Discount on bond payable A/c Cr $4,477
To bonds payable A/c Cr $63,000
(Being the issuance of bond that is recorded)
2. Interest expense A/c Dr $2,048
To discount payable A/c Cr $158
To cash A/c Cr $1,890
(Being the first interest payment that is recorded)
Note:
Interest expense
= $58,523 × 7% × 6 months ÷ 12
= $2,048
Cash
= $63,000 × 6% × 6 months ÷ 12
= $1,890
Answer:
Increase in assets of $8,000 and an increase in liabilities $8,000
Explanation:
The effect of the transaction is shown below with the help of the accounting equation
Liabilities + Owner equity = Assets
$8,000 + 0 = $8,000
($10,000 - $2,000)
Therefore from the above calculation, we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity
Answer: balance sheet
Explanation: The modest recovery of the U.S. economy after the Great Recession has been described by economists as typical of a balance sheet recession which is characterized by great savings, reduction in debts by individuals or companies collectively, as opposed to spending or investing which serve as stimulants for economies. This is usually attributed to high levels of private sector debts and as a result, there is general economic decline or slow growth.
Answer:
$1,485,000
Explanation:
Given that,
Ending Inventory = 100 units
Sales = 38,000 units
Beginning Inventory = 600 units
Direct labor hours required per unit = 2.2 DLH
Rate per direct labor-hour = $18
Total Units produced in June:
= Ending Inventory + Sales - Beginning Inventory
= 100 units + 38,000 units - 600 units
= 37,500 units
Budgeted direct labor costs for June would be:
= Total Units produced in June × Direct labor hours required per unit × Rate per direct labor-hour
= 37,500 units × 2.2 × $18
= $1,485,000
