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
Contact [7]
3 years ago
14

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issu

ed $16,600,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin Company receiving cash of $15,989,036. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.
Business
1 answer:
lyudmila [28]3 years ago
5 0

Answer:

The answer to the question is as attached  

Explanation:

a. The total credit matches the debit in a total of  $16,600,000

b. Cash $$15989036    

Discount on bonds payable (16600000 -15989036)    $610964

Bonds payable  $16600000

(To record issuance of bonds)  

b) Interest expense 825000+610964= $1435964

Discount on bonds payable 610964/11=  $55542

Cash 16600000*11%*6/12=   $913000‬

(To record discount amortized and interest paid)  

c) Interest expense 825000+55542=  $880542  

Discount on bonds payable 610964/11=   $55542

Cash 16600000*11%*6/12=   $913000  

Download xlsx
You might be interested in
Recent studies clearly indicate an association between TV advertising of foods and drinks and ______________________, especially
lesya [120]

Recent studies clearly indicate an association between TV advertising of foods and drinks and<u> the prevalence of childhood obesity,</u> especially in the United States.

<h3>What is Obesity?</h3>

This refers to the medical condition where a person is overweight and has an excess Body Mass Index.

Hence, we can see that based on the research made, it was found that there was a direct link between the use of TV advertising of foods and drinks and<u> the prevalence of childhood obesity,</u> especially in the United States.

Read more about obesity here:

brainly.com/question/1646944

#SPJ1

6 0
2 years ago
Branch Corporation issued $5 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at
defon

Answer:

Journal Entry

March 1

Dr. Cash                                     $4,550,000

Dr. Discount on Note Payable $450,000  

Cr. Note payable                      $5,000,000

December 1

Dr. Interest Expense                 $450,000

Cr. Discount on Note Payable $450,000  

Dr. Note payable                      $5,000,000

Cr. Cash                                     $5,000,000

Explanation:

Note payable is document which is payable after a specific period of time.

Note Payable is recorded at the present value of the note face value. We need to discount the face value of the note first.

Interest on the bond = $5,000,000 x 12% x 9/12 = $450,000

On December 31  Interest expense will be recorded and Payment of Note is made.

8 0
3 years ago
Hewlett-packard is currently exploring new products and markets through the development of digital imaging products in its plant
postnew [5]
The answer is; hewlett-packard can establish creative work environments across all of its plants around the world.
<span>Hewlett-packard is multinational information technology company based in America.
</span>An innovative or creative workplace is a work environment culture in which specialists see that new thoughts are invited, esteemed, and energized and it is a critical precondition for investigating new items and markets.
6 0
3 years ago
Megan: most people recognize that the budget deficit has been rising considerably over the last century. we need to find the bes
goldfiish [28.3K]

The answer is "<u>The disagreement between these economists is most likely due to differences in scientific judgments."</u>


It isn't surprising that as the inquiry proceeds with, researchers at times differ about the bearing in which truth lies. Economists regularly differ for a similar reason. Economics  is a youthful science, and there is still much to be educated. Economists here and there differ in light of the fact that they have distinctive hunches about the legitimacy of elective hypotheses or about the extent of critical parameters that measure how monetary factors are connected.



8 0
4 years ago
David owns a liquor store in a high-crime area. In order to obtain a reduced insurance premium, David promised to have a burglar
OverLord2011 [107]

Answer:A

Explanation:

6 0
3 years ago
Other questions:
  • Mary knits sweaters for sale. Her fixed costs are $100. When she makes 10 sweaters in one month, Mary must spend $15 on wool. To
    12·1 answer
  • If Joe to Go decides that a joint venture has too much risk and franchising does not provide enough financial payoff, what strat
    11·2 answers
  • Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $1
    8·1 answer
  • Marginal cost is equal to A. change in total variable cost divided by change in output. B. change in total cost divided by chang
    11·2 answers
  • It will cost $2,500 to acquire an ice cream cart. Cart sales are expected to be $1,500 a year for three years. After the three y
    6·1 answer
  • One of the disadvantages of the Six Sigma approach compared to the Kaizen approach is that: Select one: a. the lack of ownership
    5·1 answer
  • In order to go to college, Hank goes from working full-time making $28,000 per year to working part-time at half the salary for
    14·1 answer
  • For the backpack buyer, note the importance of each of the five main characteristics under PREFERENCES and consider each in term
    10·1 answer
  • Q 10.1: Sukui Electronics decided to expand their product line to include GPS trackers. They estimate that over the next 3 years
    11·1 answer
  • According to the consumer behavior model, what are the major categories of influence on the purchase decision process
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!