1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anygoal [31]
3 years ago
13

A company issues 5%, 12-year bonds with a face amount of $70,000 for $64,070 on January 1, 2021. The market interest rate for bo

nds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

Date              Particular                                Debit         Credit

Jan 1, 2021    Cash                                      $64,700

                      Discount on bond payable  $5,930

                               Bond payable                                 $70,000

Jun 30,2021  Interest expense                   $3,882

                      Discount on bonds payable                  $2,132

                      Cash                                                          $1,750

Workings:

Semi annual interest payment = 70,000 x 5% x 6/12

= $1,750

Interest expense on June 30, 2021 = Carrying value of bonds x Market interest rate

= 64,700  x 6%

= $3,882

Discount on bonds payable amortized on June 30, 2021 = Interest expense - Interest payment

= 3,882 - 1,750

= $2,132

You might be interested in
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate wheth
patriot [66]

Explanation:

1. The ceterus paribus effect gives us to what extent, the effect of a variable has on another variable, while holding all other factors fixed. Analysing job training of workers on productivity will give us results that are not biased since we will not be taking account of other factor variables in the calculations. When 2 firms are the same in almost every aspect apart from number of hours on training, then we will find out that each firm would have different levels of workers output. So we should know if workers output increases due to job training.

2. When it comes to provision of training, furms do these based on characteristics of the workers. Some of these characteristics are measurable while some are immeasurable

Measurable:

Experience on the job,

Productivity

Level of education,

immeasurable :

Skill set

Vision

Likeliness to bstay at firm

3. Apart from worker characteristics, productivity also depends on other factors one of which is technological change. A technological change can bring about increased efficiency and greater output by the worker. Different firms using different capital and technological combination are quite likely to have different output levels.

4. A positive correlation between job training and productivity cannot be used to ascertain if job training makes worker more efficient this is due to the fact that correlation only tells us if variables are in coexistence. So a positive correlation does not tell us that job training is indeed bringing about changes in the productivity of workers.

8 0
3 years ago
How much milk does a holstein cow produce per year.
sashaice [31]

Answer:

About 2,900 gallons of milk per year according to the internet

7 0
2 years ago
The Mykari Publishing House invested in buying high-end machinery that allowed its newspapers to be printed at twice the speed o
Brums [2.3K]

Answer: above-average profits

Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.

Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.

Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.

8 0
3 years ago
Dollar bills in the modern economy serve as money because
nikitadnepr [17]

Answer:

The reason for this is that the people will accept it as money confidently.

Explanation:

Since the definition of money explains that money can be anything that is accepted by the people and serve as the medium of exchange. However, in the case of a dollar bill, people have accepted it as a medium of exchange.

8 0
3 years ago
The break-even point is that level of activity where: Multiple Choice a) total revenue equals total cost. b) variable cost equal
shtirl [24]

Answer:

a) total revenue equals total cost.

Explanation:

The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of  units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.

Therefore, the answer is alternative a).

3 0
3 years ago
Other questions:
  • I help back so please help me. also i have uploaded many questions today if you want a lot of points...
    15·2 answers
  • On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
    5·1 answer
  • Kroger's 2016 financial statements show net operating profit after tax of $2,286 million, net income of $1,975 million, sales of
    12·1 answer
  • The City of Monroe Police Department pension plan, a single-employer, defined-benefit plan, reported the following account balan
    13·1 answer
  • In an economy with population growth at rate n, the change in capital stock per worker is given by the equation:_______.
    15·1 answer
  • As we move toward a cashless society, which of the following will become vital for businesses that meet clients away from the of
    8·1 answer
  • A certain brand of coffee come in two size. An 11.5 ounce package costs 4.24. 27.8 ounce package costs 9.98
    14·1 answer
  • A Mind Map is used to: Develop unique methods to find the perfect career path Find your favorite book, magazine and newspaper Pu
    12·1 answer
  • Three shareholders brought an action in federal district court for a violation of federal securities law against a corporation.
    5·1 answer
  • cost accounting systems are used to: a. accumulate production and period costs and assign them to products or services. b. accum
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!