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PIT_PIT [208]
3 years ago
7

What’s the code that 49 states have adopted to interpret and enforce contract law

Business
1 answer:
VikaD [51]3 years ago
7 0
Uniform CC (uniform commercial code)
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On January 1, 2020, NoDice Corporation issues $540,000, 5-year, 12% bonds for $529,000. Interest is paid semiannually on January
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Dr Interest expense                    $33,500

Cr Discount on bonds payable                 $1,100

Cr Cash                                                            $32,400

Explanation:

Discount on bonds payable=$540,000-$529,000=$11,000

Amortization of discount=discount on bonds issue/period of the bond

period to maturity of the bond is  5 years *2 =10 since the bond pays interest semi-annually

Amortization =$11,000/10=$1,100

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the bond semi-annual interest expense=discount amortization+interest payment

the bond semi-annual interest expense=$32,400+$1,100=$33,500

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3 years ago
A business owner paid cash for employee wages. This activity would be reported on the Statement of Cash Flows as a.as a subtract
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Hence, the effect of the journal entry has been given above, and an image is also provided for better understanding of the concept for the readers.

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