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3 years ago

If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:

Business

1 answer:

lys-0071 [83]3 years ago

8 0

Answer:

Recognized as revenues in the debt service fund.

Explanation:

Debt Service fund is a term that is used to describes a form of cash reserve utilized in the payment of interest and principal on specific kinds of debt for a given period. For example, bond premiums are commonly imposed by state law to be moved to debt service funds.

Hence, If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are: Recognized as revenues in the debt service fund.

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On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 3

Tasya [4]

Answer:

a) Cash received = $183,350

b) Interest expense = $12,730

c) Carrying value = $186,010

Explanation:

As per the data given in the question,

a) Face value of bond = $190,000

Issued at =0.965

Cash received = $190,000 × 0.965

= $183,350

b) Discount on bonds payable = $190,000 - $183,350

=$6,650

Annual amortization of discount on bonds payable =$6,650÷5

= $1,330

Cash interest = $190,000×0.60

= $11,400

Interest expenses = $11,400+$1,330

= $12,730

carrying value = $183,350 + ($1,330 × 2)

= $186,010

6 0

3 years ago

Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote

4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

Debit Credit

Allowance for doubtful accounts 25,200

Accounts receivables 25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0

3 years ago

Palding hires an asian company to produce a specified volume of sports equipment that still carries spalding's name. this is an

nadezda [96]

<span>Palding hires an asian company to produce a specified volume of sports equipment that still carries spalding's name. this is an example of contract manufacturing. Contract manufacturing </span>occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification. However, the final <span> product carries the domestic firm's name. </span>

3 0

2 years ago

After a job interview, you should _____.

Lera25 [3.4K]

You should call back to check on your application progression. (but not immediately after) I hope this helps!

7 0

3 years ago

Read 2 more answers

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second

Nata [24]

Answer:

a. Rate charged per hour of labor = [Total Budgeted Costs (Time Charges) / Number of Hours + Profit margin]

Rate charged per hour of labor = [$334,400/7,600 + $35]

Rate charged per hour of labor = $44 + $35

Rate charged per hour of labor = $79

b. Calculation of Material Loading percentage:

= [$40,000 + $10,500 + $28,000] / $400,000

= $78,500 / $400,000

= 0.19625

= 19.63%

6 0

3 years ago