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Nana76 [90]
3 years ago
13

The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the con

struction of new city streets. What journal entry should the City make in its Capital Projects Fund to record the issuance of these bonds?
Business
2 answers:
RoseWind [281]3 years ago
5 0

Answer:

Dr Cash $9,800,000

Dr Other financing use—bond issue discount $200,000

Cr Other financing source—long-term debt issued $10,000,000

Explanation:

Journal entries

Dr Cash $9,800,000

Dr Other financing use—bond issue discount $200,000

Cr Other financing source—long-term debt issued $10,000,000

$10,000,000 -$9,800,000

=$200,000

Therefore since $10,000,000 face value of general obligation bonds for $9,800,000 we are to debit Cash $9,800,000 as well as Other financing use—bond issue discount $200,000 which is the difference between $10,000,000 -$9,800,000 while we credit

Other financing source—long-term debt issued at $10,000,000

Oksanka [162]3 years ago
5 0

Answer:

The City of Twizzle will debit its Cash/Bank account with $9,800,000 as well as Debit entry of $200,000  for discount on bond account.  The credit enry of $10,000,000 will recorded in the bond account.

Date               Description                            DR                      CR

                    Cash/Bank                            9,800,000

                    Discount on Bonds                   200,000

                    Bond  Payable                                                    10,000,000

Explanation:

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Tally Company uses job costing. The job cost record for Job A61 on March 1 showed a balance of $5,200. The job was completed on
Gemiola [76]

Answer:

Total cost= $15,100

Explanation:

Giving the following information:

The job cost record for Job A61 on March 1 showed a balance of $5,200.

Job A61:

March:

Direct materials= $2,300.

Direct Labor= $4,000.

Manufacturing overhead is allocated based on direct labor cost. The rate is 90% of direct labor cost.

MOH= 4000*0.9= $3,600

Total cost= 5,200 + 2,300 + 4,000 + 3,600= $15,100

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The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the com
padilas [110]

Answer:

d. economies of scale

Explanation:

Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.

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3 years ago
Sometimes mathematical models are insufficient to predict future personnel requirements. In this case, ________ may be necessary
brilliants [131]

Answer:

The correct answer is: Managerial Judgment.

Explanation:

To begin with, the concept known as "Managerial Judgment" in the field of business refers to the process of managerial decision making done by the manager of the organization, therefore that it could be also understood as the ability that they have in order to resolve the situations that might cause harm to the operations or to the plans of the company. That is why that when sometimes the mathematical models are insufficient to predict future personnel requirements then the managerial judgment enters in the game in order to try to acquire the best solution as possible depending on the situation presented for the managers.

6 0
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How does the spending multiplier compare between a $1,000 increase in government spending and a $1,000 decrease in taxes collect
mr Goodwill [35]

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Government spending refers to the total outflow of resources made by the govt. for the betterment of economy. However the decrease in tax will not directly be considered an outflow but it surely does increase their revenue leading to more demand in the economy.

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8 0
3 years ago
1. The interest tax shield (tax deductibility of interest) is a key reason why: the required rate of return on assets rises when
Ivanshal [37]

Answer:

the net cost of debt to a firm is generally less than the cost of equity.

Explanation:

If we assume both, investor in firms and lender to firms want's a certain return x

because the lender return (the interest) are tax deductible the net cost of debt will be:  x ( 1 - t)

where t is the tax rate being rate beteen 0 and 1

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therefore, the cost of debt is lower than cost of equity.

7 0
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