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vladimir2022 [97]
3 years ago
8

RKO Company sold bonds with a face value of $890,000 for $955,501. The bonds have a coupon rate of 7 percent, mature in 10 years

, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Record the sale of the bonds on January 1 and the payment of interest on December 31 of this year, without the use of a premium account. RKO uses the effective-interest amortization method. Assume an annual market rate of interest of 6 percent.
Business
1 answer:
finlep [7]3 years ago
8 0

Answer:

June 1

Dr cash $955,501

Cr Discount on bond payable $65,501

Cr Bond payable $890,000

June 30

Dr Interest expense $26,700

Dr Discount on bonds 4,450

Cr Cash $31,150

Explanation:

RKO Company Journal entry

June 1

Dr cash $955,501

Cr Discount on bond payable $65,501

($955,501-$890,000)

Cr Bond payable $890,000

June 30

Dr Interest expense $26,700

($890,000×6%×1/2)

Dr Discount on bonds 4,450

Cr Cash $31,150

($890,000×7%×1/2)

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Consider the following information carefully and do as per the instruction given under the table below.
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<h3>What is a network diagram?</h3>

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Every society faces​ trade-offs because we live in a world of scarcity. Suppose a​ student-athlete has the opportunity to earn ​
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3 years ago
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The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and administrative.
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The preparation of the necessary journal entries for The Fine Art Museum is as follows:

<u>Journal Entries</u>:

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Credit Admissions Fees $500,000

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b. Debit Cash $250,000

Credit Admissions Fees $250,000

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Credit Cash $190,000

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Credit Operating Expenses $50,000

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Credit Supplies $30,000

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Data Analysis:

Allocation of Expenses:

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3 0
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The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also avail
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Answer:

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Increase in units 8000                                                              

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Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.

7 0
3 years ago
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