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Margarita [4]
3 years ago
12

Use the following information.

Business
1 answer:
mr Goodwill [35]3 years ago
8 0

Answer:

35.85 days

Explanation:

I suppose the question reads "What is the days' sales in receivables for 2010?"

To find the days' sales in receivables for 2010, use the following:

Days Sales in Receivales for 2010 = (Accounts Receivable in 2010 / Annual Sales) * 365

Where accounts receivable in 2010 from the information given is 940.

Annual sales = $9,570

Therefore,

Days Sales in Receivales for 2010 = (\frac{940}{9570}) * 365

= 35.85 days

The days' sales in receivables for 2010 is 35.85 days

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Simko Company issued $750,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $710,000. Interest is payab
11Alexandr11 [23.1K]

Answer:

Bond issuance:

Dr cash                                          $710,000

Dr discount on bonds payable    $40,000

Cr bonds payable                                           $750,000

The payment of interest on December 31, 2018:

Dr interest expense     $50,000

Cr discount on bonds payable    $5000

Cr cash                                           $45,000

Explanation:

The bonds were issued at a discount to their face value, as a result, the discount on bonds payable is computed thus:

discount on bonds payable=$750,000-$710,000=$40,000

Bonds payable would be credited with $750,000 while cash and discount on bonds payable would be debited with $710,000 and $40,000 respectively

annual discount amortization=$40,000/8=$5000

annual coupon=$750,000*6%=$45000

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