1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
blagie [28]
3 years ago
11

On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rat

e is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $383,793. The journal entry to record the first interest payment using straight-line amortization is:
Business
1 answer:
Ivahew [28]3 years ago
4 0

Answer:

Debit interest expense - - - - $15,351.72

Credit cash - - - - - - - $14,000

Discount payable on bond - - - - - $1,351.72

Explanation:

Parker value =$400,000

contract rate = 7% = 0.07

Market rate = 8%

Discounted bond = $383,793

First interest payment using straight lime amortization;

Debit interest expense :

8% of $383,793

0.08 × $383,793 = $30,703.44

$30,703.44 ÷ 2 = $15,351.72(semi annually)

Credit cash;

7% of $400,000

0.07 × $400,000 = $28,000

$28,000÷2 = $14,000(semi annually)

Discount on bond payable ;

Debit interest expense - Credit cash

$15,351.72 - $14,000 =$1,351.72= Discount amortization

You might be interested in
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
Allisa [31]
I Think The answer is d I hope it helps
5 0
3 years ago
Which of the following is LEAST likely to provide a sustainable competitive advantage?Select one:a. creating an efficient supply
yawa3891 [41]

Answer:

The correct answer is d. lowering price.

Explanation:

Sustainable competitive advantages are company those abilities and traits that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

Lowering price is good stratergy to compete with new competitors comming in the industry. However in long run you have to focus on building  processes that generate value for customers and both internal and external stake holders.

5 0
3 years ago
The financial statements of New World, Inc., provide the following information for the current year: Dec.31 Jan.1Accounts receiv
pashok25 [27]

Answer:

A $3066000

Explanation:

The formula for cash received from customers is: opening receivables+net sales-closing receivables.

The rationale behind the formula is that opening receivables would have turned cash by year end since current asset last one year maximum.

=$241500+$3097500-$273000

=$3066000

3 0
3 years ago
Colors of cars in a mall parking lot is?
juin [17]

Answer: Categorical

Explanation:

Categorical data refers to data that enables variables to be grouped into categories but in such a way that there is no ordering to the categories.

In this scenario, the cars will be grouped by their colors but these colors cannot be ordered by saying that red is higher than blue or yellow is higher than white. It is therefore Categorical data.

6 0
3 years ago
Consider the following costs of owning and operating a car. A ​$15,000 Fiat 500 Pop financed over 60 months at 10 percent intere
Pie

Answer:

(a) Fixed cost = Monthly payment of buying car and insurance.

Variable cost = Regular - grade gasoline cost and depreciation.

(b) $0.25

(c)  Variable cost

Explanation:

According to the scenario, computation of the given data are as follow:-

a). Fixed cost are include monthly payment of buying car and insurance and variable cost include regular - grade gasoline cost and depreciation.

b). Marginal Cost of a Mile Driven = Cost Per Gallon ÷ Mile Per Gallon + Car Cost Per Mile

= $2.50 ÷ 25 + 0.15

= $0.25

c). Whether to drive from Atlanta to Las Vegas (about 2,000 miles round trip) we will considered variable cost because its change according to the traveled distance.  

3 0
3 years ago
Other questions:
  • The board of directors oversees and ratifies strategic decisions and evaluates, rewards, and, if necessary, penalizes top manage
    13·1 answer
  • 1. Companies like Uber, Lyft (one of Uber’s main competitors), and Airbnb (an online marketplace that enables people to lease or
    14·1 answer
  • Gary lives in an area that receives high rainfall and thunderstorms throughout the year. Which device would be useful to him to
    13·2 answers
  • In 2018, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
    11·1 answer
  • Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $ 10 comma 000. The n
    6·1 answer
  • PL Inc. implements an information system to improve its supply chain. The system helps the organization to reduce wastes and opt
    9·1 answer
  • you want to have $57,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the a
    14·1 answer
  • When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
    8·1 answer
  • PROBLEM: The Chicago Cubs play their home games at Wrigley Field, located in the Lakeview neighborhood of Chicago. A recent New
    12·1 answer
  • Marketing organizations should choose their rivals carefully because the competitors that marketing strategists choose to hate a
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!