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uranmaximum [27]
3 years ago
9

On January 1, Year 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issue at face value. Th

e bonds have a stated interest rate of 8% and pay interest once per year on December 31. What is the amount of interest expense recorded on December 31, Year 1?
Business
1 answer:
hichkok12 [17]3 years ago
6 0

Answer:

The amount of interest expense which is to be recorded as on December 31, Year 1 is $8,000

Explanation:

Interest expense is the expense which is incurred or happen through an entity for the borrowed funds. It is the non-operating expense that shows or stated on the income statement.

The amount of interest expense which is to be recorded as on December 31, Year 1 is computed as:

Interest expense = Issued amount of bonds × Interest rate

where

Issued amount of bonds is $100,000

Interest rate is 8%

So, putting the values above:

Interest expense = $100,000 × 8%

Interest expense = $8,000

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Customers, looking for specific items that you can offer, usually  prefer going directly to the shops instead of wasting time looking around those bigger venues searching for items they need. </span>
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3 years ago
Explain the role of finance in business​
nadezda [96]

Answer:

Definition 1:

FINANCE is the function in a business responsible for acquiring funds for the firm, managing funds within the firm, and planning for the expenditure of funds on various assets. ... FINANCIAL MANAGEMENT is the job of managing a firm's resources so it can meet its goals and objectives.

Definition 2:

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(please note that this was found by doing research.)

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3 years ago
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Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses in the inc
koban [17]

Answer:

a.equity method investments where a company has holding of less than 20 %

3 0
3 years ago
Q 4.24: At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended
Nookie1986 [14]

Answer:

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Explanation:

A collection of accounting rules and standards usually followed, for financial reporting is known as GAAP (generally accepted accounting principles) .

For businesses, GAAP needs accrual accounting.

Accrual accounting operates on the basis of matching both revenue and expenses. Revenues and the related expenses occur concurrently, though the cash transaction concerning thereto might happen in some other period.

In the situation given in the question, the revenue from the project is earned in April, subsequently, the salary expense related to that work should also be recognized in the same period due to an accrual basis.

7 0
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The preparation of the current assets section of the balance sheet is shown below:

<u>Current Assets                  Amounts </u>

Cash                                   $22,360

Debt investments(short term) $17,360

Accounts receivables     $30,100

Supplies                             $8,170

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