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bonufazy [111]
3 years ago
8

Exercise 15-2 On January 1, 2017, Klosterman Company issued $420,000, 12%, 10-year bonds at face value. Interest is payable annu

ally on January 1. Prepare the journal entry to record the issuance of the bonds.
Business
1 answer:
Maslowich3 years ago
6 0

Answer:

The journal entry to record the bond issuance is shown below:

Explanation:

The journal entry to record the bond issuance is as:

Cash A/c.............................................Dr  $420,000

        Bonds Payable A/c......................Cr  $420,000

Being the bonds issued

As the bonds are issued by the company so cash is coming into the business, which is an asset and any increase in asset is debited. Therefore, the cash account is debited. And cash is received against the bonds payable, so the account of bonds payable is credited.

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On January 1, 2021, Bishop Company issued 6% bonds dated January 1, 2021, with a face amount of $33 million. The bonds mature in
Allisa [31]

Answer:

a. Determine the price of the bonds at January 1, 2021.

market price:

PV of face value = $33,000,000 / 1.04²⁰ = $15,060,769

PV of coupon payments = $990,000 x 13.590 (PV annuity factor, 4%, 20 periods) = $13,454,100

market price = $28,514,869

b. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2021.

Dr Cash 28,514,869

Dr Discount on bonds payable 4,485,131

    Cr Bonds payable 33,000,000

c. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method.

amortization of bond discount = ($28,514,869 x 4%) - $990,000 = $150,595

Dr Interest expense 1,140,595

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    Cr Discount on bonds payable 150,595

d. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method.

amortization of bond discount = ($28,665,464 x 4%) - $990,000 = $156,619

Dr Interest expense 1,146,619

    Cr Cash 990,000

    Cr Discount on bonds payable 156,619

4 0
3 years ago
Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. So
soldier1979 [14.2K]

Answer:

The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

Explanation:

Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.

Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.

Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price,  should show up and offer their cheaper services.

Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have  tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.

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3 years ago
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kolezko [41]

Answer:

The government

Explanation:

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Which of these factors make it difficult for an employee to get a job offer?
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The factors are: Lack of experience, Economic depression,  Inappropriate comments or behaviour in the interview, Poor use of English language,and  low cognitive skills

In general, employers will hire an individual if they <em>believe </em> that the individual would provide more financial value compared to the amount of his/her salary. They would not necessarily higher you based on your academic performance because often times you would had to start learning everything related to the job again from the scratch.

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Acme company has just completed the incorporation process and received its articles of incorporation from the state. at the firs
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The answer is adopting bylaws. In addition, unlike the articles of incorporation the bylaws are not public records and classically do not have to be gather in a line with any governmental unit. The bylaws will be accepted by the directors of the corporation at their first board meeting or accepted by the deed of incorporator and then accepted at the first board conference.
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