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Rom4ik [11]
3 years ago
11

Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $180,000 on January 1, 20

17. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,862. 1. What is the amount of the discount on these bonds at issuance
Business
1 answer:
Nitella [24]3 years ago
6 0

Answer:

bonds' face value $180,000

coupon rate 8%, semiannual = 4%

maturity 3 years x 2 = 6 periods

market interest rate = 10% or 5% semiannual

the journal entry to record the issuance of the bonds:

January 1, 2017, bonds issued at a discount

Dr Cash 170,862

Dr Discount on bonds payable 9,138

    Cr Bonds payable 180,000

the amortization of the bond discount should be $9,138 / 6 = $1,523 on every coupon payment.

Journal entry to record payment of first coupon:

June 30, 2017, first coupon payment

Dr Interest expense 8,723

    Cr Cash 7,200

    Cr Discount on bonds payable 1,523

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All of the following are disadvantages of outsourcing a product​ except: A. outsourcing allows the company to focus on its prima
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Answer:

A. outsourcing allows the company to focus on its primary function

Explanation:

  • The companies outsource to cut the labor costs and these include the salaries and the personal overheads and primarily used by these companies to focus on the core aspects of business.
  • To delegate the company's business to third parties and to the external agencies and improve the quality production and innovation.
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3 years ago
There are four major categories with examples that provide a useful way for examining logistics and supply chain performance: Th
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Quality

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Logistics and supply chain management performance is best evaluated by examining time required to carry out task, the quality of task at hand, the cost to be expended and the supporting metric.

4 0
3 years ago
Read 2 more answers
What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000? Assume the m
Finger [1]

Answer:

a. The real GDP increases by $200,000.

a. The real GDP increases by $150,000.

Explanation:

a. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000?

Eventual effect on real GDP = Amount of increase in government spending * (1 /(1 - MPC)) = $50,000 * (1 / (1 – 0.75)) = $200,000

Therefore, the real GDP increases by $200,000.

a. What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000?

Eventual effect on real GDP = (Amount of increase in government transfers * (1 /(1 - MPC))) - Amount of increase in government transfers = ($50,000 * (1 / (1 – 0.75))) - $50,000 = $150,000

Therefore, the real GDP increases by $150,000.

3 0
2 years ago
Max was the brand manager for a pet food company that was to introduce a new brand of dog food. Through research, they had disco
vredina [299]

Answer:

C. It is not a good brand name because it is too long.

Explanation:

I would say that It is not a good brand name because it is too long. The reason is that brand name needs to be concise and to the point. It should be catchy and some cases should suggest what the brand is about.

It can be the product name but even for that it is too long. This brand name fits perfectly as a tag line for this new dog food line.

I hope the answer is helpful. Thanks for asking.

5 0
2 years ago
(2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}
Lilit [14]

Answer:

10

Explanation:

first solve in parenthesis

2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}

46+(-1)+(-35)

46-1-35

10

hope this helps

brainliest?

7 0
3 years ago
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