When managers delegate work, three transfers occur. the three transfers are responsibility, authority, and ____

On January 1, Boston Enterprises issues bonds that have a $1,300,000 par value, mature in 20 years, and pay 7% interest semiannu

MariettaO [177]

Answer:

1. $45,500

2. Journal entries

3. Journal entries

Explanation:

The Interest amount can be calculated by multiplying the face value of bonds with annual interest and the time period. Journal entries are given below

Requirement 1 (Interest amount)

Interest amount = Face value of bond x annual interest rate x 6/12

Interest amount = 1,300,000 x 7% x 6/12

Interest amount = $45,500

Requirement 2 (Journal entries to record issuance of bond and interest expense)

1 Jan (issuance of bond payable )

DEBIT CREDIT

Cash 1,300,000

Bonds payable 1,300,000

30 June (interest expense recorded)

DEBIT CREDIT

Cash 45,500

Bonds payable 45,500

31 Dec (interest expense recorded)

DEBIT CREDIT

Cash 45,500

Bonds payable 45,500

Requirement 3 (Journal entry for issuance assuming bonds are issued at a.96 b.104)

At 96

DEBIT CREDIT

Cash(1,300,000 x 96%) 1,248,000

Discount(1,300,000 - 1248,000) 52,000

Bonds payable 1,300,000

At 104

DEBIT CREDIT

Cash(1,300,000 x 104%) 1,352,000

Premium (1,300,000 - 1248,000) 52,000

Bonds payable 1,300,000

8 0

3 years ago

Rip garage, inc. (459 ellis avenue, harrisburg, pa 17111), is an accrual basis taxpayer that repairs automobiles. in late decemb

mixas84 [53]

Answer:

MEMO

To: Treasurer of Trip Garage, Inc.

From: Me

Subject: Dispute over accrued revenue

Mrs. S. Apple,

Good evening. Regarding your dispute over accrued revenue generated form the repair of Mr. Mosley's car, I must inform you the following:

Trip Garage, Inc., is an accrual basis taxpayer, therefore, revenues must be recorded once the repair service was completed, not when the invoice was collected.

In future occasions when similar problems show up, you should record an allowance for doubtful accounts. This way, if you believe that an account receivable is unlikely to be collected, it will be not considered for the year's financial records. This adjusting journal entry must be recorded before the end of the year, if not, all related revenues must be included in the years income statement.

Regards,

Me

Explanation:

Accrual taxpayers are required to record revenues once the revenue generating activity has been completed, i.e. Trip should have recorded $1,000 in revenue during 2017:

Dr Accounts receivable 1,000

Cr Service revenue 1,000

If Trip didn't consider that it would be able to collect the $1,000 receivable, then it should have recorded it as bad debt expense:

Dr Bad debt expense 1,000

Cr Allowance for doubtful accounts 1,000

If thy did not record the bad expense, then the IRS agent is right, and the $1,000 must be included in the 2017 income statement.

3 0

4 years ago

Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of

Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0

3 years ago

If a person deposited $50 a month for 6 years earning 8%, this would involve what type of computation

mario62 [17]

50*12 =600 put 600$ a year
600(1.08)^6 the power represents 6 years and 1.08 represents the percentage. (its gain so remember to add the 1 with 0.08.)

You earn $952.12 .

5 0

3 years ago

Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement audi

Pie

Answer:

The answer is letter B

Explanation:

Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.

Because analytical procedures are evaluations of financial information made by study of plausible relationships among financial and nonfinancial data using models that range from simple to complex. The reason is that income statement amount is based on transactions over a period of time, but balance sheet amounts are for a moment in time. Moreover, amounts subject to management discretion tend to be less predictable.

5 0

3 years ago

When managers delegate work, three transfers occur. the three transfers are responsibility, authority, and _____?