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QveST [7]
3 years ago
9

2. If the market interest rate is 7%, the bonds will issue at $418,022. 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. Round your answers to the nearest dollar amount.)
Business
1 answer:
Alex Ar [27]3 years ago
4 0

Answer:

The journal entries are as follows:

(a) On January 1, 2021

Cash A/c    Dr. $418,022

To Bonds payable            $418,022

(To record the issue of bond)

(b) On June 30, 2021

Interest expense A/c [$418,022 × 7%/2]    Dr. $14,630.77

To cash                                                                                  $14,630.77

(To record the first two semiannual interest payments)

(c) On December 31, 2021

Interest expense A/c    Dr. $14,630.77

To cash                                                         $14,630.77

(To record the first two semiannual interest payments)

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The petty cash fund of the Brooks Agency is established at $250. At the end of the current period, the fund contained $172 and h
KatRina [158]

Answer:

a.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                   $250

                     Cash                                                                               $250

b.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Entertainment expense                    $41

                      Postage                                             $25

                      Printing                                              $12

                     Petty Cash                                                                    $  78

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                       $78

                      Cash                                                                                $78

2. Reasons why a Petty Cash account would be credited:

a. Fund amount is being reduced.

c. Fund is being eliminated

When the fund is being reduced by expenses, it is credited as shown above.

When the fund is to be eliminated, it will be credited so as to remove all the money in it.

7 0
3 years ago
Which of the following business ownership structures is the simplest and easiest to set up?
victus00 [196]

Answer:

C. Sole Proprietorship

Explanation:

Sole Proprietorship is a business owned and less capital required business that can be operated, it is can be operated even by an individual with a simple setup such as a table and a chair in a garage.

With Limited Liability Company (LLC), there are a lot of legal requirements to be reached before setting it up, such as putting in place board of directors, internal auditors and external auditors, mentioning few.

With Partnership it requires two or more individuals in order to operate in addition to a partnership deed.

With Corporation it is similar to the LLC

Thus Sole proprietorship is the simplest and easiest to set up.

4 0
3 years ago
Under the terms of a divorce agreement entered into in 2018, Kim was to pay her husband Tom $7,000 per month in alimony, Kim's p
leva [86]

Answer:

a. $36,000

Explanation:

Since the total payment is $7,000 which is reduced to $3,000 because of child

The $4,000 reflects the payment of the child. This $4,000 is come from

= $7,000 - $3,000

= $4,000

So, only $3,000 for 12 months would be allowed as a deduction from gross income

So, the total amount for deduction would be

= $3,000 × 12 months

= $36,000

3 0
3 years ago
What are the differences among the four levels of managers in the organizational pyramid?
Marysya12 [62]

Answer:

The four levels of managers are:

  1. entry level managers, e.g. supervisors
  2. low level managers, e.g. store managers
  3. middle level managers, e.g. division manager
  4. upper level managers, e.g. CEO, CFO, COO

The higher the position on the organizational pyramid, the tasks and responsibilities also differ. Entry level managers generally supervise the tasks of entry level workers, e.g. sales clerks.

Low level managers generally have both supervisory and general management functions, e.g. a store manager must make sure that everyone does their job properly, but also must make administrative decisions like hiring, overseeing inventory, etc.

Middle level managers are generally functional managers, meaning that they are in charge of a certain area within the organization, e.g. human resources, finances, marketing, etc.

Upper level managers are responsible for developing the organization's strategies and long term goals, their focus should always be on the big picture and the future of the organization,  not just one part of it.

6 0
3 years ago
You purchase shares with a market price of $60 using an 80% margin requirement. If the maintenance margin is 30%, before you wou
nevsk [136]

Answer:

$17

Explanation:

A margin requirement refers to the percentage of marginable securities which an investor is required to pay for using cash from his own pocket. Therefore, the remaining percentage is is a margin loan percentage.

Since margin requirement in the question is 80%, it implies that the remaining 20% is a percentage of margin loan. We therefore have:

Cash payment = $60 × 80% = $48

Margin loan = $60 × 20% = $12

Maintenance margin refers to the the least equity amount an investor must have in his account. Whenever the equity amount falls below the maintenance margin requirement (MMR), there will be a margin call which requires the investor to deposit additional cash.

From the question, the level at which the price could fall to trigger a margin call can be calculated as follows:

Market price level = Margin loan ÷ (1 - MMR) .......................... (1)

Where,

MMR = Maintenance margin requirement = 30% = 0.30

Substituting for margin loan and MMR in equation (1), we have:

Market price level = $12 ÷ (1 - 0.30) = $12 ÷ 0.70 = $17.14

Market price level = $17 approximately

Therefore, the market price could fall to $17 approximately before a margin call could be triggered.

8 0
3 years ago
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