I would go with D because it makes more sense
Answer and Explanation:
The Journal entry is shown below:-
Bond interest expense Dr, $18,610
To Cash $18360
To Discount on bonds $250
(Being first interest payment is recorded)
For recording the first interest payment we simply debited the bond interest expenses as it increased the expenses and we credited cash and discount on bonds as it reduced the assets and the discount should be credited
Working Note
Total discount on bonds issued = Sold bonds - Received proceeds
= $408,000 - $403,000
= $5,000
Amortization of Semi Annual Discount = Total discount on bonds issued ÷ Number of periods
= $5,000 ÷ 20
= $250
Cash interest paid = Sold bonds × Interest rate × From Jan to June ÷ Total number of months in a year
= $408,000 × 9% × 6 ÷ 12
= $18,360
Total Interest expense = Cash interest paid + Amortization of Semi Annual Discount
= $18,360 + $250
= $18,610
Answer:
Duke Company’s total comprehensive income for 2018 is $3,136,000.
Explanation:
Note: See the attached excel file for the single, continuous multiple-step statement of comprehensive income for 2018.
A multi-step income statement can be described as an income statement in which gross profit as well as the details of each category of expenses and incomes are presented in order to obtain the total comprehensive of a firm for a specified period.
After preparing a single, continuous multiple-step statement of comprehensive income for 2018 as given in the attached excel file, the total comprehensive income of Duke Company for 2018 is calculated to be $3,136,000.
Answer and Explanation:
The given statement is true as the real options would provide the managers the flexibility for deciding to invest or wait so that it would make a more computed decision
The real option that permits the input or output in the production process that could vary so it would be investment timing option as here the timing plays a very vital role
The given situation represent a real option to expand as the firm would pursue the extra expansion contracts
