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Alla [95]
3 years ago
14

On January 1, 2020, Crane Corporation issued $660,000, 6%, 10-year bonds at face value. Interest is payable annually on January

1. Crane Corporation has a calendar year end.Prepare all entries related to the bond issue for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)2020Account Titles and ExplanationDebitCreditenter an account title for the journal entry on January 1enter a debit amount enter a credit amount enter an account title for the journal entry on January 1enter a debit amount enter a credit amount enter an account title for the journal entry on December 31enter a debit amount enter a credit amount enter an account title for the journal entry on December 31enter a debit amount enter a credit amount
Business
1 answer:
notsponge [240]3 years ago
5 0

Answer:

Dr cash   $660,000

Cr bonds payable       $660,000

Dr interest expense     $ 39,600.00  

Cr interest payable                           $39,600.00  

Explanation:

The issue of the bonds at face value implies that cash proceeds equal the face value of $660,000 which is then debited to cash account and credited to bonds payable.

The interest due on the bonds on 31st December payable on 1st January 2021 =face value*coupon rate

face value is $660,000

coupon rate is 6%

interest=$660,000*6%=$39,600.00  

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Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy.
IRINA_888 [86]

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

<h3>What is multinational enterprise?</h3>

Multinational enterprise are International organization or cooperation with two or more countries in the chain of operation.

They also involve in production of goods and services.

Therefore, Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

Learn more on cooperation here

brainly.com/question/1669538

7 0
2 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
tigry1 [53]

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

8 0
3 years ago
What criteria is used to determine the date when foreign taxes are accrued for purposes of the foreign tax credit?
vfiekz [6]
➡️ If you choose to take the foreign tax credit, and the taxes paid or accrued✔️

➡️Use the rate of exchange in effect on the date you paid the foreign taxes to the ✔️

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➡️Need to know how to qualify for Foreign Tax Credit and avoid double taxation✔️

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7 0
3 years ago
Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o
Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

7 0
3 years ago
_______________is concerned with what is​, and ▼ positive analysis neutral analysis normative analysis is concerned with what ou
EastWind [94]

Answer:

The correct answer is normative analysis.

Explanation:

A positive analysis is the one that attempts to reflect reality with statements of cause and effect and is used mainly in microeconomics. On the other hand, a normative analysis, in which reality is prescribed, that is, we go beyond explanation and prediction, value judgments are used.

In contrast to the positive analysis, the normative analysis responds how the law should achieve efficiency objectives. This analysis assumes that efficiency is an objective that law should reflect and that legal norms should change when they fail. From this perspective, efficiency is a social value that the Law should promote.

3 0
3 years ago
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