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makvit [3.9K]
3 years ago
10

On January 1, 2014, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907, which provides the bondholde

rs with a 10% yield. The bonds are dated January 1, 2014, and mature January 1, 2019, with interest payable December 31 of each year. Aumont Company allocates interest and unamortized discount or premium on the effective-interest basis.(a) Prepare the journal entry at the date of the bond issuance. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and Explanation Debit CreditJanuary 1, 2014 (b) Prepare a schedule of interest expense and bond amortization for 2014?2016. (Round answers to 0 decimal places, e.g. 38,548.)Schedule of Interest Expense and Bond Premium AmortizationEffective-Interest MethodDate CashPaid InterestExpense PremiumAmortized CarryingAmount of Bonds1/1/14 $ $ $ $ 12/31/14 12/31/15 12/31/16 (c) Prepare the journal entry to record the interest payment and the amortization for 2014. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and Explanation Debit CreditDecember 31, 2014 (d) Prepare the journal entry to record the interest payment and the amortization for 2016. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and Explanation Debit CreditDecember 31, 2016

Business
1 answer:
babunello [35]3 years ago
8 0

Answer:

a) 37,907.

Kindly go through the attachment for the other answers requested for from the question.

Explanation:

The journal entry for the issuance of Bond = 37,907.

The journal Entry for Interest Payment and Amortization in 2014 are in the attached file. Kindly go through it for the illustration through which the answers are gotten.

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bixtya [17]

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What is the difference between a profit center and an investment center?

Profit center is a division or a branch of a company that is considered to be a standalone entity that is responsible for making revenue and cost related decisions. Investment center is a profit center that is responsible for making investment decisions in addition to revenue and cost related decisions

What are investment center managers responsible for?

An investment center segment of an organization responsible for costs, revenues, and investments in assets. is an organizational segment that is responsible for costs, revenues, and investments in assets. Investment center managers have control over asset investment decisions.

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1 year ago
If the inflation rate is 6 percent and the nominal interest rate is 4​ percent, then the real interest rate is A. 1.5​ percent,
Fudgin [204]

Answer:

The correct answer is

D. ​-2 percent, which is the nominal interest rate minus the inflation rate.

The real interest rate equals D. the nominal interest rate minus the inflation rate.

Explanation:

The real interest rate formula is

<u>Real interest rate =Nominal interest rate - Inflation rate </u>

Inflation rate=6 %

Nominal interest rate = 4​%

Real rate of return =4%  - 6 %

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D. ​-2 percent, which is the nominal interest rate minus the inflation rate.

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What is the difference between a supply chain and supply chain management?
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Answer:

A supply chain is the system put in place to move a good or service, from a provider, to the final customer.

Supply chain management is the process of managing the supply chain.

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Free_Kalibri [48]

Incomplete question. The missing options read;

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b. Schedule development of security features after the application’s initial release.  

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d. Contract with an external vendor to develop a security solution separately from the main application.

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<u>a. Design the application’s security features after the application’s initial build is complete.</u>

Explanation:

Remember, our main concern here is to determine <em>the most time-saving and cost-effective way for the Product Manager to address the new application's security considerations.</em>

Hence, if the Product Manager decides to schedule the development of security features after the application’s initial release, this would not be the most time-saving approach. Also, utilizing a DevSecOps approach to incorporate security into the development process from the beginning and contracting with an external vendor to develop a security solution separately from the main application is not the best cost-saving approach.

However, designing the application’s security features after the application’s initial build is complete would be the most time-saving and cost-effective way for the Product Manager to address the new application's security considerations.

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