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
zhuklara [117]
3 years ago
10

On January 1, Creed Boxing Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually.

The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:___________
Business
1 answer:
Lelechka [254]3 years ago
6 0

Answer:

Debit Cash $1,864,097; debit Interest Expense $135,903; credit Bonds Payable $2,000,000.

Explanation:

Cash $1,864,097

Discount on Bonds Payable $135,903

      To Bonds Payable $2,000,000

(Being the issuance of the bond is recorded)

For recording this we debited the cash it increased the assets and the same time it also increased the liabilities so the bond payable is credited and the balancing figure is debited to discount on bond payable

You might be interested in
Ezra runs a gyro stall at a farmers market
olga nikolaevna [1]
The rest of the question?
8 0
3 years ago
The local Harley-Davidson motorcycle outlet has special events on Saturday mornings. Vintage bikes are shown, food is served, an
madreJ [45]

Answer:

Harley-Davidson has become a cult

Explanation:

A cult is a self-identified group of people that share a passion or an interest. When a brand becomes a cult brand, it has achieved the highest level of emotional connection to its consumers.

8 0
3 years ago
A loss from the disposal of a significant component of a business should be reported separately in the income statement: after i
wlad13 [49]

<u>Answer:</u> Option 1 After income from continuing operations.

<u>Explanation:</u>

A disposal account shows the profit or loss from the sale of any asset. When the sale price is higher than the book value of the component then it is a gain. When the sale price is less than book value then it is a loss.

Loss from the sale of component will reduce the income of the business. When there is a loss it is debited in the income statement. This appears below the operations income and it is deducted from the revenue to show the actual value of the revenue.

8 0
3 years ago
Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,800 units, April 13,300, May
elixir [45]

Answer:

Production= 11,300 units

Explanation:

Giving the following information:

Sales:

March 10,800 units

April 13,300

Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales.

March 1 beginning inventory is projected to be 2,160 units.

<u>To calculate the production for March, we need to use the following formula</u>:

Production= sales + desired ending inventory - beginning inventory

Production= 10,800 + (13,300*0.2) - 2,160

Production= 11,300 units

8 0
3 years ago
Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue bud
EastWind [94]

Answer:

False

Explanation:

In internal service fund are funds used in governmental accounting to track goods or services shifted between departments on a cost reimbursement basis are not operated on taxes or on financial sources. An example of an internal service fund the maintenance of department that provides equipment maintenance services to other departments and

Governmental funds on the other hand are those funds through which most governmental functions are accounted for. The acquisition, use, and balances of the government's expendable financial resources and the related current liabilities-except those accounted for in proprietary funds-are accounted for through governmental funds (general, special revenue, capital projects, debt service, and permanent funds).

3 0
3 years ago
Other questions:
  • The main reason that gross national income figures can be misleading is because they
    14·1 answer
  • Which research method involves manipulating a variable in order to determine how it affects another variable (in a cause and eff
    5·1 answer
  • Mark, the business head of a firm, wanted to give New Year’s gifts to his employees. He discussed this with his employees and de
    14·1 answer
  • A company’s flexible budget for 16,000 units of production showed sales, $48,000; variable costs, $24,000; and fixed costs, $17,
    15·1 answer
  • Which type of promotion do many people consider more credible because it is less biased
    9·2 answers
  • Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales wer
    5·1 answer
  • For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs were expected to total $1,65
    9·1 answer
  • Administrative:
    13·1 answer
  • Jones Corporation reported current assets of $191,800, current liabilities of $137,000, and total liabilities of $275,714 on its
    12·1 answer
  • Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!