Answer:
The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.
Explanation:
This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.
The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.
So, the appropriate journals to record this transaction is as provided above.
Answer:
Opportunity Cost refers to loss of potential gain which could've resulted from other non chosen alternatives when one opts for an alternative. It's also defined as the next best alternative.
The Opportunity Cost of attending a 4 year college with full time schedule & living on campus would be the foregone income another student earns who works in an organization for those same number of hours for the same duration of 4 years and also the fees paid for those 4 years at the college which if would've been banked or invested would've yielded a return.
The reason for choosing a four year college experience over above mentioned alternatives could be the in the form of expected higher income once an individual avails a degree.
Answer:
Cash receipt for the month of November is $600000
Explanation:
The receipt of the cash will be such that the sales made in a particular month will be calculated half in the month of sale and half in the next month. Thus, the cash receipt from the accounts receivables for the month of November will be,
Cash received from the October sales = 620000 * 0.5 = $310000
Cash received from the November sales = 580000 * 0.5 = $290000
Total cash receipt in the month of November will be,
Cash receipt - November = 310000 + 290000
Cash receipt - November = $600000
