What vehicle looks the same coming or going

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, r

Tomtit [17]

Answer:

1.Dr Cash 37,282,062

Dr Discount on bonds payable 2,717,938

Cr Bonds payable 40,000,000

2a.Dr Interest expense 1,535,896.90

Cr Cash 1,400,000

Cr Discount on bonds payable 135,896.90

b.Dr Interest expense 1,535,896.90

Cr Cash 1,400,000

Cr Discount on bonds payable 135,896.90

3.$1,535,896.90

4. Yes

5.$37,282,000

Explanation:

1. Preparation of the Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

Dr Cash 37,282,062

Dr Discount on bonds payable 2,717,938

(40,000,000-37,282,062)

Cr Bonds payable 40,000,000

2. Preparation of the Journal entries to record the following:

a. Journal entry to record the first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount

First coupon payment December 31, Year 1, f

Dr Interest expense 1,535,896.90

(1,400,000+135,896.90)

Cr Cash 1,400,000

Cr Discount on bonds payable 135,896.90

(2,717,938 / 20 coupons = $135,896.90)

b. Journal entry to record the interest payment on June 30, Year 2, and the amortization of the bond discount

June 30, Year 2, second coupon payment

Dr Interest expense 1,535,896.90

Cr Cash 1,400,000

Cr Discount on bonds payable 135,896.90

(2,717,938 / 20 coupons = $135,896.90)

3. Calculation to Determine the total interest expense for Year 1.

Cash 1,400,000 + Discount on bonds payable 135,896.90 = $1,535,896.90

4. Yes the bond proceeds will always be less than the face amount of the bonds in a situation where the contract rate is less than the market rate of interest because if we have a high market rate than the coupon, this would mean that the bonds will sell at a discount

5. Computation for the price of $37,282,062 received for the bonds using the present value tables

PV factor, 4%, 20 periods =0.4564

PV annuity factor, 4%, 20 periods =13.590

Present Value (Face value) = $40,000,000 x 0.4564 = $18,256,000

PV of coupon payments = $1,400,000 x 13.590 = $19,026,000

Therefore the bond's market price will be:

Present Value (Face value) +PV of coupon payments

Bond's market price = $18,256,000 + $19,026,000

b

Bond's market price = $37,282,000

5 0

3 years ago

Jon works for a major bank. The revised employee handbook that he received 5 years ago says that all employees with 25 years of

Tanzania [10]

Answer:

no

Explanation:

The hand book gave to other employes did the same so should jon.

7 0

3 years ago

The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of: opportu

vova2212 [387]

The theory that quantity supplied and price are positively related, other things constant is referred to as the law of supply. The law of supply states that when there is an increase in the prices of goods and services there is also an increase in the supply of such goods and services.

7 0

3 years ago

an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of service

saveliy_v [14]

Answer:

62). Gerard’s contract is voidable at his option while it is entirely executory.

63) based on the circumstances of the case.

Explanation:

62. Note that, under the restatement, Gerard can avoid the contract legally even though he can perform the contract duty. This is because of his mental state.

63. Evidently a minor cannot avoid a contract just because he says he lacks the legal capacity.

Certainly, the decision to accept his claims would be based on the circumstances surrounding the case.

3 0

3 years ago

Bridget, the office manager, spends a large part of her day working closely with those whom she supervises to successfully accom

Darya [45]

Based on the interactions and connections Bridget is making as a manager, we can infer that this is the <u>interpersonal/ human skill.</u>

<h3>What is the human skill?</h3>

This is a skill that managers have that allows them to work well with employees.
It allows managers to bring out the best from their employees by motivating and managing them to their strengths.

Bridget is engaging this skill because she monitors employees to be successful and reaches out to other departments as well.

In conclusion, this is the human managerial skill.

Find out more on managerial skills at brainly.com/question/26001011.

5 0

2 years ago