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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

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lisabon 2012 [21]

Answer:

Probably not, because Alyssa made a mistake about the dog's value, not a mistake about material fact.

Explanation:

When Sierra offered to sell the dog to Allysa, Allysa failed to discuss the ancestry of the puppy. She wrongly believed the dog came from a line of champions.

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She made the mistake of assuming the dog was worth $800. She made a mistake about the dog's value and not the material fact.

7 0
3 years ago
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Wewaii [24]

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2 years ago
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Tater and Pepper Corp. reported free cash flows for 2015 of $39.1 million and investment in operating capital of $22.1 million.
lara [203]

Answer:

$76.5 million

Explanation:

For computing the EBIT, first we have to do the following calculations

Free cash flow = Operating cash flow – Investment in operating capital  

$39.1 million = Operating cash flow -$ 22.1million

So, operating cash flow is

= $39.1 million + $22.1 million

= $61.20 million

Now

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5 0
3 years ago
What trait are narcissists likely to have that is associated with leader emergence but not effectiveness?
Evgen [1.6K]

Answer:

c. high creativity

Explanation:

Narcissistic personality disorder is characterized by the behavior of an individual who has a great need to feel admired, this individual has a mental disorder that leads him to have an exacerbated perception of himself and his characteristics, having a vanity and a sense of very strong self-importance.

The characteristic that narcissists probably have and is associated with the emergence of the leader, but not effectiveness, may be high creativity, as such individuals can be creative in the sense of self-valuing themselves and their personal achievements, leading to even making up stories to feel valued, while the creativity present in a leader is focused on a vision of the business and management of a company and people, so it is correct to say that a leader's creativity aims to make business more efficient and improve working conditions of its employees.

7 0
3 years ago
In preparing its August 31, 2010 bank reconciliation, Adel Corp. has available the following information:
saul85 [17]

Answer: C $22,100

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Add:

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8/31/10 Bank Charges. $100

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5 0
3 years ago
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