Cupola fan corporation issued 10%, $400,000, 10-year bonds for $385,000 on june 30, 2016. debt issue costs were $1,500. interest
is paid semiannually on december 31 and june 30. one year from the issue date (july 1, 2017), the corporation exercised its call privilege and retired the bonds for $395,000. the corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. required: 1. to 4. prepare the necessary journal entries. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)
Given: <span>issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2016 </span><span>debt issue costs were $1,500. interest is paid semiannually on December 31 and June 30 </span><span>one year from the issue date (july 1, 2017), the corporation exercised its call privilege and retired the bonds for $395,000 </span><span>the corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Journal entries: Debit Credit </span>June 30, 2016 Cash 383,500 Bonds payable 383,500 Dec. 31, 2016 Interest expense 20,825 Bonds payable 825 Cash 20,000 June 30, 2017 Interest expense 20,825 Bonds payable 825 Cash 20,000 June 30, 2017 Bonds payable 385,150 Loss on early extinguishment 9,850 Cash <span>395,000
* Interest is computed by: 400,000 * 10% = 40,000 per annum 40,000 / 2 = 20,000 per semi-annual. Every Dec. 31 and June 30
<span>Andy’s motivation for working so hard
is most likely the extrinsic motivation ofa raise in his salary (money). </span><span>
Extrinsic motivation refers to the phenomenon
when behavior and actions are motivated by external factors, such as
rewards, fame or praise rather than intrinsic factors which lie within an individual (such as: improving one’s skills and work ethic or genuine interest in
the task or project at hand).
In Andy’s case, where he is working so hard in hopes for a
raise, he is externally motivated rather than internally motivated since he
hopes to be monetarily rewarded </span>(extrinsic factor)for his hard work.
Express warranties can be made in writing, orally or even inferred by the salesperson's conduct. Even if the salesperson made a mistake by offering an express warranty, it is still valid. An express warranty states that a good or service will specifically be a certain way, or perform in a certain way. When a salesperson shows a model of the good, that is considered a express warranty that the good will be the same as the model.
Fixed cost per mile 0.32 =(1600+1200+360+40)/10000.
Kristen Lu purchased a second user automobile for 8,000 at the start of last year and incurred the subsequent operatingcosts:8,000atthebeginningoflastyearandincurredthefollowingoperatingcosts ($8,000 ÷5 years) Insurance Garage rent Automobile tax and license Variable operating cost$ 1.600 $ 1.200 $ 360 $ 40 $ 0.14 per mile$The variable expense consists of gasoline, oil, tires, maintenance, and repairs. therefore the annual straight-line depreciation is$1,600.
The car is kept in a very garage for a monthly fee. Kristen drove the car 10,000 miles last year. Compute the typical cost per mile of Owning and operating cost of the the car. What costs above are relevant during this decision? Kristen is considering buying an upscale sports car to interchange the car she bought last year.
She would drive the identical number of miles irrespective of which car she owns and would rent the identical parking zone. The sports car's variable operating costs would be roughly identical because of the variable operating costs of her old car.
