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Mekhanik [1.2K]
3 years ago
9

On January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of $73,000. The bonds are sold for $7

0,810. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is
Business
1 answer:
Goryan [66]3 years ago
8 0

Answer:

$6,278

Explanation:

The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.

Therefore;

Coupon payment = $73,000 × 8%

= $5,840

Discount on the bond = $73,000 - $70,810

= $2,190

Discount amortized per year = $2,190/5

= $438

Total interest expense = Coupon payment + Amortization of discount

= $5,840 + $438

= $6,278

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3 years ago
Brick Co. has 170,000 shares of common stock outstanding at January 1, 2015. On May 1, 2015, it issued 30,000 additional shares
fenix001 [56]

Answer:

The number of shares that Brick should use to calculate 2015 diluted earnings per share are 202,000 shares

Explanation:

The computation of the number of shares are shown below:

= January 1 shares + may 1 shares + convertible cumulative preferred stock

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= $202,000 shares

The 4 months are calculated from January 1 to May 1, 2015

And, the 8 months are calculated from May 1 to December 31

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What Supreme Court decision overturned Plessy v. Ferguson? A. Brown v. Board of Education B. Engel v. Vitale C. Marbury v. Madis
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<span>What Supreme Court decision overturned Plessy v. Ferguson?

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5 0
3 years ago
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an insta
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Answer:

Explanation:

a. The journal entries are shown below:

Accounts receivable A/c Dr $410,000

            To Sales revenue A/c $370,000

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(Being the sale is recorded)

Cost of goods sold A/c Dr $300,000

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Service revenue $20,000

Total revenue $390,000

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= $40,000 × 3 months ÷ 6 months

= $20,000

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