1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sunny_sXe [5.5K]
3 years ago
12

On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and

December 31 each year.
Required:
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal entry required" in the first account field.)
Business
1 answer:
Annette [7]3 years ago
4 0

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $600,000

         To Bonds Payable $600,000

(Being Bonds issued is recorded)

Here we debited the cash as increased the assets and we credited the bonds payable as  it also increased the liabilities

2. Interest Expense Dr, $21,000 ($600000 × 7% × 6 ÷ 12)

              To Cash $21,000

(Being first semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as  it decreased the assets

3. Interest Expense Dr, $21,000 ($600,000 × 7% × 6 ÷ 12)

              To Cash $21,000

(Being second semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as  it decreased the assets

You might be interested in
Which of the following is not a correct way of calculating a liquidity ratio?
aleksley [76]

Option C -Operating Cash Flow = Current Liabilities / Operating Cash Flow s not a correct way of calculating a liquidity ratio.

Liquidity ratios are a measure of a company's ability to settle its short-term payments. A company has the ability to quickly exchange its revenues and is using them to pay his obligations is dictated by its liquidity ratios. The potential to pay back debts and keep engaged on installments is simpler the better the ratio. Since this can vary by industry, and current ratio of 1.0 usually signals that a group's debt do not exceeding its liquid assets. In enterprises in which there is a quicker product changeover and/or shorter payment cycles, ratings below 1.0 may be acceptable.

Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability.

Learn more about Liquidity ratios here:

brainly.com/question/15395374

#SPJ4

3 0
1 year ago
Suppose that the government decides to charge cola consumers an excise tax. Before the tax, the market is in equilibrium, where
Hitman42 [59]

Answer:

The answer is: The excise tax on cola beverages is $2 per case.

Explanation:

Excise taxes are taxes levied on certain goods or services.

In this case the price of cola beverages is $4 per case, since excise taxes are included in the price of the product, then the excise tax on cola beverages = price paid by consumers - price received by producers = $4 - $2 = $2

8 0
3 years ago
Explain why accurate measurement is so important in baking.
Fittoniya [83]
Accurate measurement is VERY important in banking because banking is all about exact calculations. If one balance measure is off, the entire bank report will not be acurate. One little mess up and the entire calculation goes wrong. 
5 0
3 years ago
Cost of goods sold is given by:
icang [17]

Answer:

b. Net Purchases + beginning inventory - ending inventory.

Explanation:

The formula to compute the cost of goods sold is shown below:

Cost of good sold = Beginning inventory + net purchase - ending inventory

We simply added the net purchase and deduct the ending inventory to the beginning inventory so that the correct value can be determined

It records that cost which is directly related to the product that means it excludes the indirect cost

8 0
2 years ago
Performance, polygraph, or drug tests are?
Ivanshal [37]
I am not entirely sure what a performance test is, but I can help with the others. A polygraph is a machine, used usually if you are in legal trouble, to see if you are lying.  While results aren't 100% accurate, you typically can get a gage for if someone committed a crime.  They are also rarely used for interviews, some companies want to see if people are lying on their resumes.  Drug tests are tests that are given to most people with a job, and especially sports players.  Companies especially like to test people for drugs, to see if they might be on an illegal drug that could cause them to work less efficiently.  It also is a liability issue for the company if an employee is on an illegal drug.  Drug tests are typically done at a lab, and you usually have to pee in a cup and have it get tested.
8 0
3 years ago
Other questions:
  • By offering a free dog biscuit with each cup of coffee, the Coffee Collective entices customers to visit its shop during the pet
    10·1 answer
  • An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp.
    15·1 answer
  • If someone is showing signs of an alcohol overdose, you should:
    5·1 answer
  • Suppose that the opportunity-cost ratio for fish and lumber is 1F ≡ 1L in Canada but 2F ≡ 1L in Iceland. Then ____________ shoul
    12·1 answer
  • Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
    5·1 answer
  • Group price discrimination has ________ consumer surplus than under ________.
    14·1 answer
  • An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $10,0
    11·1 answer
  • Kelly wants to save money for an emergency fund. She decides to take advantage of the high interest rates of the holiday club he
    13·1 answer
  • Double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to
    15·1 answer
  • Suppose that in 2014, currency in circulation was $950 billion, required reserves were $60 billion, and excess reserves were $84
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!