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
vichka [17]
3 years ago
15

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $58,523 on January 1, 2018. The market interest r

ate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
Record the bond issue and first interest payment on June 30, 2018.
Business
1 answer:
Mamont248 [21]3 years ago
4 0

Answer:

Please refer to the below for Journal entries

Explanation:

The journal entries are seen below

1. Cash A/c Dr $58,523

Discount on bond payable A/c Cr $4,477

To bonds payable A/c Cr $63,000

(Being the issuance of bond that is recorded)

2. Interest expense A/c Dr $2,048

To discount payable A/c Cr $158

To cash A/c Cr $1,890

(Being the first interest payment that is recorded)

Note:

Interest expense

= $58,523 × 7% × 6 months ÷ 12

= $2,048

Cash

= $63,000 × 6% × 6 months ÷ 12

= $1,890

You might be interested in
The market rate is the rate used to calculate the actual cash payments made to bondholders.
NISA [10]
It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
6 0
4 years ago
Economic efficiency is A. a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its
pickupchik [31]

Answer: Option B

Explanation: Economic efficiency refers to a situation when all the resources that exist in an economy are allocated in such a way that all the individuals and entities in the economy is getting the maximum utility out of them.

In an efficient economy the surplus of both consumer and supplier are maximum and any increase or decrease in resource allocation will only result in harm of the economy.

Hence from the above we can conclude that the correct option is B.  

5 0
4 years ago
This is nearly double the proposed US contribution to which of the following?
Lilit [14]

Answer: C . Paris Agreement

Explanation:

You included no background passage or additional details to the question for me to know what contribution you speak of but the above is most probably the answer.

The U.S. never ratified the Kyoto Protocol so I don't think they had contribution requirements. The London Accords produces research for financial investors so has little to do with the U.S. as a whole.

The Geneva Convention is simply an agreement on conduct during wars so this does not require contributions. This leaves the Paris Agreement ... on Climate Change which has set targets on the emissions to be cut by developed countries so it is most likely the answer.

4 0
3 years ago
If a U.S. citizen buys a dress made in Nepal by a Nepalese firm, then _____.
balu736 [363]

Answer:

(B). U.S. consumption increases, U.S. net exports decrease, and U.S. GDP is unaffected.

Explanation:

Gross Domestic Product (GDP) of a country measures the total monetary value of all the goods and services it produces.

<em>GDP = Consumption + Investment + Government spending + (Export - Import)</em>

It takes into account consumption by citizens, spending by government, investment and net exports (which is the difference between exports and imports).

When a U.S. citizen buys a dress produced in Nepal by a Nepalese firm, the value of the dress reflects in U.S. 'consumption' and increases it.

U.S. Net export (Export - Import) also drops as import increases, assuming export remains the same.

However, the GDP of U.S. remains the same because the value of the dress, which is already recorded as a part of 'consumption', is cancelled out when 'imports' are deducted.

6 0
3 years ago
After Abby graduated from college last year, her uncle created an accounting position for her in his business. Her older brother
Reika [66]

The correct answer is; Find it difficult to remove family members from positions, even if it is not good for the business.

Further Explanation:

Many times when a family member hires close members of the family or friends they do not want to fire the person. They try to avoid conflicts in the family and this can cause issues in the business.

Abby's uncle should change the brothers role in the business so that the business can run more smoothly and not have stock that isn't selling. The brother may want to change positions but is afraid to ask the uncle in fear the uncle the will mad. The best thing to do in this type of situation is call a family or business meeting and talk about the many roles and just ask if anyone would like to change roles in the business.

Learn more about business roles at brainly.com/question/14345729

#LearnwithBrainly

5 0
3 years ago
Read 2 more answers
Other questions:
  • An accountant increases the price he charges for his services by 14 percent. In​ response, the demand for his services decreases
    14·1 answer
  • Fire insurance policies include deductibles:
    7·1 answer
  • A comparable property has a feature that is superior to the subject property. what adjustment would need to be made if you are u
    11·1 answer
  • The company that relies on computer and telecommunications technologies instead of physical presence for communication between e
    15·1 answer
  • Helena is looking for an advisor who can help guide her as she invests. She also wants to reduce transaction and trading costs.
    11·1 answer
  • What are the differences between the​ long-run equilibrium of a perfectly competitive firm and the​ long-run equilibrium of a mo
    12·1 answer
  • Kong Inc. reported net income of $298,000 during 2018 and paid dividends of $26,000 on common stock. It also has 10,000 shares o
    11·1 answer
  • Fiscal policy is government action that involves:
    12·1 answer
  • A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer o
    10·1 answer
  • Both ceo pay and average worker pay have increased substantially in the past 30 years. true or false?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!