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mr Goodwill [35]
3 years ago
12

On January 1, 2016, Tonika Company issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The

issue price was $9,668 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2016 interest expense?
A. Interest expense 700
Cash 700

B. Interest expense 883
Discount on bonds payable 183
Cash 700

C. Interest expense 773
Discount on bonds payable 73
Cash 700

D. Interest expense 676
Discount on bonds payable 24
Cash 700


a. Option A
b. Option B
c. Option C
d. Option D
Business
1 answer:
disa [49]3 years ago
3 0

Answer:

Option C is correct one.

Interest expense 773

Discount on bonds payable 73

Cash 700

Explanation:

2016 interest expense  = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate

= $9,668 x 08

= $773

Cash interest payment

= maturity value of the bond x the stated interest rate = $10,000 x .07

= $700  

Amortization of discount on bonds payable

= interest expense - interest cash payment

= $773 - $700.

= $73  

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Explanation:

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dentistry is important to maintaining the health of your smile as well as your overall health. Unaddressed tooth decay or gum disease can lead to infections and other conditions that can put your entire body at risk for health issues.

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5 0
3 years ago
________ is the range of product and service segments that the firm serves within its market.
Vinil7 [7]

Horizontal scope exists the range of product and service components that the firm acts within its market.

<h3>What are vertical and horizontal scopes?</h3>

A horizontal acquisition is a commercial tactic in which one company acquires another that competes on an equal footing in a given industry. The purchase of business operations within the same manufacturing vertical is referred to as vertical integration.

The firm's horizontal scope is the variety of product and service sectors it offers within its market. The vertical scope is the degree to which an organization's internal activities cover all of the value chain activities in the industry, part of them, some of them, or none of them.

The variety of product and service segments that the company offers within its market is referred to as its horizontal scope.

To learn more about vertical and horizontal scopes refer to:

brainly.com/question/14591857

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6 0
1 year ago
The Piper Co purchased a new machine 4 years ago at $15 million. The machine can be sold for $5 million today. The firm's curren
notsponge [240]

Answer:

$5,750,000

Explanation:

Given that,

Net working capital = $750,000

Current Liabilities = $2,000,000

Book value of the net fixed assets = $3,000,000

Net working capital = Current assets - Current Liabilities

Book value of the current assets:

= Net working capital + Current Liabilities

= $750,000 + $2,000,000

= $2,750,000

Book value of the firm's assets:

= Book value of the current assets + Book value of the net fixed assets

= $2,750,000 + $3,000,000

= $5,750,000

4 0
3 years ago
Two managers in the research and development department of a company disagree on whether their organization should outsource dev
Allushta [10]

Answer:

Intragroup.

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

In this scenario, two managers in the same department of a company disagree on whether to outsource the development of a new product or staff it internally. Thus, this is an example of intragroup conflict because its happening within the same department of an organization having common goals and interests.

An intragroup conflict can be defined as a type of conflict that arises between individuals belonging to the same team or group.

5 0
3 years ago
When the economy is at its highest level of expansion, it is said to have reached its _____. trough contraction peak none of the
Alex_Xolod [135]
When the economy has reached its peak
6 0
2 years ago
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