Answer:
The journal entry for the issuance of the bond is shown below:
Explanation:
The entry to be posted on Jan 1
Cash A/c..............................................Dr $76,180
Premium on bonds payable A/c........Cr $6,180
Bonds Payable A/c..................................Cr $70,000
As bonds issued, so cash is increasing and any increase in cash is debited. Therefore, the cash account is debited. But the bonds issued at a premium so the premium on the bonds payable will be credited. And bonds payable account is credited.
Answer:
She will report an interest income of $1,827 for this year.
Explanation:
The yield to maturity is 6%. However, the interest on the bond is compounded semi-annually. Therefore, we need to calculate the interest income for either semi-annual period and then sum the two incomes.
Interest income for first semi-annual period
= $30,000 x 0.06 x 6/12
= $900
Interest income for second semi-annual period
= ($30,000 + $900) x 0.06 x 6/12
= $30,900 x 0.06 x 6/12
= $927
Interest income for the year
= $900 + $927
= $ 1,827
Answer:In American law, a signing agent or courtesy signer is an agent whose function is to obtain a formal signature of an appearer to a document. In common parlance, most jurisdictions require the appearer to sign before a notary public. From this, the practice of a notary public designating themselves as a signing agent has arisen. There are notaries public who specialize in the notarization of real estate transfer and loan document signings. Signing agents often have certification and training through private organizations, but is not a requirement in law, although it may be a requirement of the lender in the oversight of real estate transaction document signatures.
Explanation:
The direct write-off method is not allowed under GAAP because it violates the principle expense recognition (matching) principle.
A direct write-off is an accounting method by which uncollectible accounts received are written off as bad debts.
- GAAP stands for General Accepted Accounting Principles.
- It is a collection of conventionally and generally accepted accounting rules and standards for financial reportage.
- The direct write-off method is also referred to as the direct charge-off method.
- Upon receiving an invoice that has been deemed uncollectible, bad debts have to be cleared off.
- The direct write-off method violates the principle expense recognition (matching) principle.
- The matching principle states that expenses need to be matched with the revenue for a given period of association.
Therefore, the direct write-off method is not allowed under GAAP because it violates the principle expense recognition (matching) principle.
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