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snow_tiger [21]
3 years ago
11

The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5%

bonds with a face amount of $530,000 on November 1, 2018. The bonds sold for $468,748, a price to yield the market rate of 6%. The bonds mature October 31, 2038 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method.
Required:
1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2018?
2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2018?
3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2019?
4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2019?

Business
1 answer:
algol [13]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following images.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a two sheets with the formulas indications.  

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Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounti
djyliett [7]

Answer:

The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.

Explanation:

  • Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000

  • Income tax expense for 2019 = 180.000-28.000=152.000

4 0
3 years ago
SEND HELP ASAP PLEASE IM CRYING I NEED HELP
Klio2033 [76]

Answer: D because it is D

4 0
2 years ago
What is this form used for? to withdraw money from a savings account to deposit money in a savings account to order checks open
snow_lady [41]

Answer:The answer is passbook

Explanation:

savings Account is the most common form of bank account for the low income earners, The main objective of savings account is to encourage people to form a habit of savings. This type of bank account is operated with the use of passbook and interest is paid to the owners of this account. The amount used in opening a savings account vary from banks to banks, the interest payable on the account to owners of the account also varies from banks to banks.

This account has two maximum number of times in a month that the owners can withdraw money from the account, if withdrawals are more than twice in a month, it means the owners is operating it like current account and will therefore not attract any interest in that month.The interest on this type of account is calculated either monthly,quarterly, or yearly.

7 0
3 years ago
F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the
erica [24]

Answer:

E) A sharp increase in its forecasted sales.

Explanation:

Haven developed a forecasting model to estimate its AFN for the upcoming year, F. Marston, Inc. would have an increase in the additional funds needed (AFN) due to the sharp increase in its forecasted sales.

An increase in sales translates to an increased cash flow and profits.

3 0
3 years ago
Prepare the issuer's journal entry for each of the following separate transactions.
Alekssandra [29.7K]

Answer:

A. Dr Cash $327,500

Cr Common Stock $210,000

Cr Capital Paid In $117,500

B. Dr Cash $90,000

Cr Common Stock $90,000

C. Dr Inventory $59,000

Dr Machinery $185,000

Cr Note Payable $95,000

Cr Common Stock $80,000

Cr Capital Paid In $69,000

Explanation:

Preparation of the issuer's journal entry

A. Dr Cash $327,500

Cr Common Stock $210,000

(52,500 shares* $4 par value )

Cr Capital Paid In $117,500

($327,500-$210,000)

B. Dr Cash $90,000

Cr Common Stock $90,000

C. Dr Inventory $59,000

Dr Machinery $185,000

Cr Note Payable $95,000

Cr Common Stock (4000 * $20) $80,000

Cr Capital Paid In $69,000

($59,000+$185,000-$95,000-$80,000)

5 0
3 years ago
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