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3 years ago

The adjusting entry to record accrued interest on a note payable requires a debit to

1 answer:

7 0

The adjusting entry to record accrued interest on a note payable requires a debit to Interest Expenses and a credit to Interest Payable. Interest payable is an ongoing duty account that is used to report the amount of interest that has been obtaining but has not yet been paid as of the date of the balance sheet.

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Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following fina

7nadin3 [17]

Answer:

Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $31,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Explanation:

3 0

2 years ago

olmstead industry has 9.40% coupon bonds outstanding with a price of $1,023.58. interest is paid semiannually and the yield to m

guapka [62]

4.752 years (approximately 4.8 years) The bond would maturity in 4.752 years.

Applying the yield-to-maturity formula

YTM is equal to C + (fv - pv) /n (fv + pv) /2.

9.40% of the par value is the coupon rate C.

= (9.40/100)× 1000

= $94

Face value (par value) is equal to $1,000.

Price = Pv = $1,023.58

Yield to maturity is equal to 0.0880.

n = how many years before maturity?

Using the formula above;

0.0880= 94 + (1000-1023.58)/n ÷ (1000+1023.58)/2

0.0880= 94 + (-23.58)/n ÷ (2023.58)/2

0.0880= 70 + (-23.58)/n ÷ 1011.79

94 - (23.58)/n = 0.0880 × 1011.79

94 - (23.58)/n =89.03752

-23.58 / n =89.03752 - 94

-23.58 / n = -4.96248 ( Cross multiply)

-23.58 = -4.96248n

Add -4.96248 to both sides.

n = 4.752

The maturity period for the bond is 4.752 years (approximately 4.8years)

To know more about the maturity calculation visit here :

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6 0

1 year ago

On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at 101. Interest is payable ann

adell [148]

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $ 5,050,000

To Bonds payable A/c $5,000,000

To Premium on Bonds payable A/c $50,000

(Being bond is issued)

2. Interest Expense A/c Dr $3,97,500

Premium on bonds payable A/c $2,500 ($50,000 ÷ 20)

To Interest payable A/c $400,000 ($5,000,000 × 8%)

(Being the interest expense is recorded)

7 0

3 years ago

What happens if the amount of Bad Debt Expense is overstated at year end? A : Net income will be overstated. B : Allowance for D

Yuri [45]

Answer:

D. Net Accounts Receivable will be understated

Explanation:

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3 years ago

If you case a car accident, which type of insurance will require you to pay the least out of pocket?

maria [59]

Uninsured motorists. Make sure you have it.

7 0

3 years ago