Ask question

Ask question

All categories

3 years ago

6

Ivanhoe Corporation issued $468,000 of 6% bonds on May 1, 2020. The bonds were dated January 1, 2020, and mature January 1, 2023

, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Ivanhoe’s journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry

1 answer:

max2010maxim [7]3 years ago

6 0

Answer:

May 1, 2020

Dr Cash $477,360

Cr Bonds Payable $468,000

Cr Interest Expense $9,360

July 1, 2020

Dr Interest Expense $14,040

Cr Cash $14,040

Dec 31, 2020

Dr Interest Expense $14,040

Cr Interest Payable $14,040

Explanation:

May 1, 2020

Dr Cash $477,360

Cr Bonds Payable $468,000

Cr Interest Expense $9,360

(Accrued Interest = 468,000 x 6% x 4/12)

July 1, 2020

Dr Interest Expense $14,040

Cr Cash $14,040

(Bond interest expense = $468,000 x 6% x 6/12)

Dec 31, 2020

Dr Interest Expense $14,040

Cr Interest Payable $14,040

You might be interested in

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Taya2010 [7]

Answer:

6.50 Years

Explanation:

The computation of the payback period of the investment is shown below;

Total cash outflow is

= $15,000 + $8,000

= $23,000

Now the Cash Inflow in all 6 years is

= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000

= $20,500

Cash inflow in Year 7 is $5,000.

But Cumulative Cash flows from Year 1 to Year 7 is

= $20,500 + $5,000

= $26,500

This amount is more than Initial Investment i.e. $23,000.

So our Payback period is between 6 & 7 years i.e.

= 6 + ($23,000 - $20,500) ÷ 5000

= 6.50 Years

7 0

2 years ago

Intellectual property protection, nondisclosure agreements, assignments of inventions and, covenants not to compete and license

Tresset [83]

Answer:

The correct answer is b. Technology development.

Explanation:

Technological development is defined as the systematic use of knowledge and research directed towards the production of materials, devices, systems or methods including the design, development, improvement of prototypes, processes, products, services or organizational models.

Starting from the fact that technological knowledge is essentially composed of technical information, know-how, inventions, guides, manuals, procedures, among other intangible elements, before which, intellectual property comes to play a decisive role in the protection and management of These elements of an intangible nature, and therefore, knowledge-generating institutions such as universities, increasingly resort to intellectual property to understand what kind of intangible intellectual property assets exist in their technology, how to manage them during the transfer process, and of course having the necessary control to be able to monetize them, that is, to obtain profit through their exploitation.

4 0

3 years ago

Describe a real or made up but realistic situation in which you would want to use revolving credit. (2-4 sentences)

Artist 52 [7]

Answer:

don't know what is the answer sorry

very sorry

6 0

3 years ago

The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco

timama [110]

Answer:

The appropriate amount of Bad Debt Expense is $3,345.20.

Explanation:

The appropriate amount of Bad Debt Expense can be calculated as follows:

Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)

Substituting the relevant values into equation (1), we have:

Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20

Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.

3 0

2 years ago

Would you prefer a fully taxable investment earning 8.1 percent or a tax-exempt investment earning 6.1 percent? (assume a 28 per

blsea [12.9K]

<span>Prefer the 6.1 percent tax-exempt investment. Let's do the math and see why the tax-exempt investment is the better choice. For the 8.1% taxable investment, you get taxed at the rate of 28%. Which means that you only get to keep 100%-28% = 72% of your gains. So 0.72 * 8.1 = 5.832 which means your effective earning percentage is only 5.832% which is less than the 6.1% rate you get for the tax-exempt investment. Another consideration that wasn't taken into account for the question is the earnings on the taxable investment may push you up into a higher tax bracket. Which in turn increases the tax burden on your other investments. So the better choice here is the 6.1% tax-exempt investment even though that first glance the 8.1% investment looks higher.</span>

7 0

3 years ago