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Dafna1 [17]
3 years ago
9

Your company issues $50,000 of one-year, 10% bonds at face value. The journal entry to record this transaction will include a de

bit to:
A. Cash and a credit to Bonds Payable for $50,000
B. Cash for $55,000, a credit to Bonds Payable for $50,000, and a credit to Interest Payable for $5,000
C. Cash and a credit to Bonds Payable for $55,000
D. Cash for $50,000, a debit to Interest Expense for $5,000, and a credit to Bonds Payable for $55,000.
Business
1 answer:
Ostrovityanka [42]3 years ago
8 0

Answer:

A. Cash and a credit to Bonds Payable for $50,000

Explanation:

The journal entry is shown below:

Cash $50,000  

           To Bonds Payable  $50,000

(being the issuance of the bond payable is recorded)

We simply debit the cash as it increased the assets and credited the bond payable as it also increased the liabilities so that the proper posting could be done i.e $50,000 should be credited and debited

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A firm has $800 in inventory, $1,400 in fixed assets, $500 in accounts receivables, $100 in net working capital, and $50 in cash
Alex777 [14]

Answer:

Add it all Together?

Explanation:

2850?

3 0
2 years ago
The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bon
MaRussiya [10]

Answer:

Ans. The after tax cost of this bond is 2.09%

Explanation:

Hi, first we need to establish the cash flow of the bond, so we can find the after tax cost of the bond. After we find the after tax cash flow of the bond, we must use the IRR function of MS Excel to find the semi-annual cost of this debt, but, all after tax debts should be presented in annual basis. Let me walk you through the process. First, let me show you how it should look.

Face Value      100  

price              101,4  

years                7 years  

Coupon                9%  

Coupon                4,5% semi-annually  

tax                      30%  

   

Per       Cash Flow After Tax  

0                 101,4 101,4  

1                   -4,5 -3,15  

2                   -4,5 -3,15  

3                   -4,5 -3,15  

4                   -4,5 -3,15  

5                   -4,5 -3,15  

6                   -4,5 -3,15  

7                   -4,5 -3,15  

8                   -4,5 -3,15  

9                  -4,5 -3,15  

10                  -4,5 -3,15  

11                  -4,5 -3,15  

12                  -4,5 -3,15  

13                  -4,5 -3,15  

14               -104,5 -73,15  

   

Cost of Debt 1,04% semi-annually

Cost of Debt 2,09% annually

Ok, now, as you can see, there are 14 periods, that is because the coupon is paid semi-annually, the way to find the cash flow (I mean, the bond´s coupon) is:

Coupon (semi-annual)=(Face Value)x\frac{0.09}{2} =4.5

At the end (period 14), we need to add the face value and the coupon, that is $100+$4.5=$104.5

Now, to find the value of the third column (after-tax cost), we do the following.

After-tax-Cost=Couponx(1-taxes)=4.5(1-0.3)=3.15\\

Now, consider this, you are receiving 101.4 for every 100 of debt, that means that you are receiving more money than the emission value, and paying interests over 100 instead of 101.4, that is why we have to use the IRR excel function to find out the semi-annual cost of debt. That is, 1.04%.

Now, to make this an effective annual rate, we calculate it like this.

EffectiveAnnualRate=(1+semi-annual Rate)^{\frac{1}{2} }  -1=(1+0.0104)^{\frac{1}{2} } -1=0.0209

Finally, the after-tax cost of this debt is = 2.09%

Best of luck.

6 0
3 years ago
a county taxes real property at a millage rate of 15. if your customer owns real property in the county and the assessed value i
patriot [66]

$1800

15 x 0.001=0.015

.8 x $150,000=120,000

120,000x.015=$1800

Another way to calculate the number of tax during this example is to multiply your assessed value by 0.0185. Using the millage rate above, a home assessed at $300,000 would have a bill of $5,550. The formula is: Assessed value ($300,000) x millage rate (1.85%, or 0.0185) = land tax ($5,550). To calculate the mileage, or mill rate, a possessor divides the quantity of mills by 1,000.

As an example, say a neighborhood taxing authority encompasses a mill rate of 15 on the assessed value of holding in its jurisdiction. That puts the capital levy rate at 1.5% before any county taxes adjustments or exemptions. To calculate your individual property's effective charge per unit, all you have got to try and do is divide your annual invoice by what you estimate to be the value of your property.

The assessed value estimates the reasonable value for your home. it's based upon prevailing local realty market conditions. Multiply the value of your item or service by the county taxes charge per unit. If you have got a charge per unit as a percentage, divide that number by 100 to induce the charge per unit as a decimal. Then use this number within the multiplication process.

learn more about county taxes: brainly.com/question/25844719

#SPJ4

3 0
2 years ago
The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called?
romanna [79]

The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called Keogh plan.

A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated organizations for retirement functions. A Keogh plan can be set up as both a defined-benefit plan or a defined-contribution plan, though maximum plans are set as the latter. A Keogh plan is a type of retirement investment account for self-employed people and business owners. Contributions to a Keogh plan are made pre-tax, while withdrawals in retirement face income tax. Positive sorts of Keogh plans may have higher contribution limits than other retirement debts.

A Keogh plan (is a tax-deferred pension account for self-employed people and employees of unincorporated businesses. Like IRAs, an worker can also put almost available investment into a Keogh plan, and the investment earnings develop on a tax-deferred basis.

Learn more about Keogh plan here:-

brainly.com/question/14560326

#SPJ4

5 0
1 year ago
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently
a_sh-v [17]

Answer:

my mind is blank. how is even an adult supposed to answer this. i read it and it makes no sense. pls rethink before u send ok?

just a top tip for u

Explanation:

5 0
3 years ago
Read 2 more answers
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