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
Marysya12 [62]
3 years ago
10

Sugar City issued $2 million of bonds to fund the construction of a new city office building. The bonds have a stated rate of in

terest of 5% and were sold at 101. Which of the following entries should be made in the Capital Projects Fund to record this event?
A) Debit Cash $2.02 million; Credit Bonds Payable $2 million and Premium on bonds payable $.02 million
B) Debit Cash $2.02 million; Credit Bonds payable $2 million and Other financing sources $.02 million.
C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million.
D) Debit Cash $2.02 million; Credit Other financing sources $2 million and Revenue $.02 million.
Business
1 answer:
love history [14]3 years ago
3 0

Answer:

C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million

Explanation:

<u>A private firm will reocrd as follow:</u>

As the bonds are sold at a higher price than their face value we recognize a premium which will be amortized over the life of the bond.

<u><em>But in this case, we are doing a public accounting thus,</em></u> we must record the cash received and credit other financing sources for the whole amount funded.

You might be interested in
Using the chart below for reference, how would you describe the relationship between the amount of education you receive and the
Maslowich

Answer:

Positive correlation

Explanation:

As the level of education increases, the higher the level of income. This is a perfect example of a positive correlation. An increase in one of the variables ( education) increases the other variable( income). A positive correlation is also a direct relationship.

A negative correlation or indirect relationship is when an increase in one variable leads to the other variable moving in the opposite direction.

4 0
2 years ago
Chocolate Co. reports the following information from its sales budget: ​ Expected sales:
maksim [4K]

Answer:

The total amount of cash expected to be received from customers in September is: B. $ 108,000

Explanation:

The total amount of cash expected to be received from customers in September include the following :

  1. <em>Cash Sales in the month of September - 25 %</em>
  2. <em>Cash Receipts from Accounts for August Sales - 75 %</em>

<u>The Calculation of cash expected to be received from customers in September is as follows :</u>

Cash Sales - September = 120,000 × 25% =  30,000

Credit Sales - August = 104,000 × 75%      =   78,000

Total                                                              =  108,000

4 0
3 years ago
ConsGrough, Inc. has increased its annual common dividend by 3% in each of the years that the company has existed. If you believ
Salsk061 [2.6K]

Answer: $171.67 would be the price of the security

Explanation: This problem relates to dividend growth model, which can be shown as follows :-

=\frac{D_{1}}{P_{0}}+\:G

where'

d1 = expected dividend

p = price

g = growth rate

therefore,

=\frac{\$5\left ( 1+3\% \right )}{P_{0}}+\:3\%

solving this we get

p_0=\$171.67

8 0
3 years ago
Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has o
patriot [66]

Solution:

Gross income : 262000  

a) Ordinary and necessary business expenses

amount                                      explanation

108850                          Ordinary expenses associated with Jeremyâs                              

                                         business (42250+47700+18900)

b) Unreimbursed  employment expenses

amount                                      explanation

  -                        Un reimbursed employee business expenses

                                  are deductible from AGI not for AGI

c) Real property taxes and investment  expenses.

amount                                      explanation

   -                                 Taxes and investment expenses

                                      are deductible from AGI not for AGI

d) Rental expenses

amount                                      explanation

8590                       Rental expenses are deductible for

                        AGI even though they aretechnically investment or

                                  production of income expenses.

e) Self-employed  health insurance

amount                                      explanation

4590                       Jeremy may deduct all the costs of his

                                   health insurance because he is not eligible

                                          for health plan

f) Self- employment  taxes

amount                                      explanation

1295                         ½ of self-employment taxes allowed

                                                 as for AGI deduction

g) Alimony

amount                                      explanation

  5180                                Alimony is allowed for AGI deductions

h) Donations

amount                                      explanation

  -                                 Charitable contributions are from

                                              not for AGI deductions

Total for AGI  deductions Amount

                                                128505  

AGI                                          135495

8 0
2 years ago
In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its
Dmitry [639]

Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

GOOD LUCK

8 0
3 years ago
Other questions:
  • If the market rate of interest is greater than the contract rate of interest, the bonds will sell for a.their face amount. b.mor
    14·2 answers
  • "A borrower obtained a $10,000 term loan with 6 1/2% interest paid yearly. A $1,000 principal reduction was to be paid with each
    13·1 answer
  • Which of the following is not usually a right or attribute of preferred stock? a. Having a priority claim in liquidation relativ
    7·1 answer
  • As of December 31, 2017, Armani Company s financial records show the following items and amounts Cash ..........................
    12·1 answer
  • Which assertions about statement 1 and statement 2 is true? Statement 1: 10,000 bonds sold by Echo Corporation were bought by a
    11·1 answer
  • Harold owns a chain of coffee shops. He hires accountants to summarize the information from his company's business transactions
    7·1 answer
  • DISTRIBUCIONES MUESTRALES Y ESTIMACIONES
    8·1 answer
  • A relevant cost ______. Multiple select question. differs between alternatives is always an opportunity cost pertains to the fut
    5·1 answer
  • Please help me with this homework
    6·1 answer
  • When the fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate __
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!