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irina1246 [14]
2 years ago
12

Hernandez Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price resulted in an effective-inter

est rate of 6% on the bonds. Interest is payable annually on January 1. Hernandez uses the effective-interest method to amortize bond premium or discount.
Mathematics
1 answer:
vlada-n [284]2 years ago
7 0

For calculation of the following entries, the bond interest expense will gotten by multiplying the carrying bond value by the market interest rate.

<em />

<em />

<h3>Journal entry to record issuance of the bonds</h3>

Date    Account titles                   Debit        Credit

Jan. 1.  Cash                                $407,968

                 Bonds payable                           $380,000

                 Premium on bonds payable      $27,968

                 ($407,968 - $380,000)

<h3>Journal entry to record accrual of interest and the premium amortization</h3>

Date      Account titles                          Debit      Credit

Dec. 31. Bond interest expense          $24,478

                    Premium bond payable                    $2,122

                    Bond interest payable                      $26,600

<h3>Journal entry to record payment of interest </h3>

Date    Account titles                   Debit        Credit

Jan. 1.  Bond interest payable     $26,600

           ($380000 * 7%)

                   Cash                                            $26,600

Missing words "<em>Prepare journal entries to record (a) The issuance of the bonds, (b) The accrual of interest and the premium amortization on December 31, 2022 and (c) The payment of interest on January 1, 2022"</em>

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Read more about Bond issuance

<em>brainly.com/question/16048929</em>

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In the case of a Second Class Lever as attached diagram shows proof to formula below.

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The the load in the wheelbarrow shown is trying to push the wheelbarrow down in an anti-clockwise direction whilst the effort is being used to keep it up by pulling in a clockwise direction.

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This general rule is expressed as clockwise moments = anti-clockwise moments (or CM = ACM)

 

This gives a way of calculating how much force a bridge support (or Reaction) has to provide if the bridge is to stay up - very useful since bridges are usually too big to just try it and see!

The moment of the load on the beam (F) must be balanced by the moment of the Reaction at the support (R2) :

Therefore F x d = R2 x D

It can be seen that this is so if we imagine taking away the Reaction R2.

The missing support must be supplying an anti-clockwise moment of a force for the beam to stay up.

The idea of clockwise moments being balanced by anti-clockwise moments is easily illustrated using a see-saw as an example attached.

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from our kitchen scales example above 2kg x 0.5m = R2 x 1m

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But we can't put a real bridge on kitchen scales and sometimes the loading is a bit more complicated.

Being able to calculate the forces acting on a beam by using moments helps us work out reactions at supports when beams (or bridges) have several loads acting upon them.

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