All categories

3 years ago

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

Business

1 answer:

ahrayia [7]3 years ago

4 0

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

To Premium on bonds payable A/c XXXXX

To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

You might be interested in

Larkspur, Inc. issued $432,000, 7%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Larkspu

kirill [66]

Answer and Explanation:

The Journal entry to record the issuance of the bond is as follows:

Cash Dr $449,280 ($432,000 × 1.04)

To Bond payable $432,000

To Premium on bond payable $17,280

(Being the issuance of the bond is recorded)

here the cash is debited as it increased the assets and credited the bond payable and the premium on bond payable as it also increased the liabilities

3 0

2 years ago

3. Based on sales, what products do customers want? How accurately did the

PilotLPTM [1.2K]

Answer: Market survey

Explanation:

One of the ways to determine what customers want is my doing s survey. A survey would guide you through what they want. One of the ways to do this survey to get accurate answers is through questionnaire's, questionnaire's could be sent through mobile or advert or mails, asking what exactly what the customers want, from the feedback, the owner can predict accurately.

5 0

2 years ago

Describe what an insurance company does and sells without using the word insurance

Crank

If something goes wrong, the company will make sure you're not completely screwed.

8 0

3 years ago

A real estate professional leased a building for 10 years at an annual rent of $48,000. She will receive a commission of 7.5% fo

Alex Ar [27]

Her gross income from this commission over the life of the lease is $28,560.

Commission for the first five years

Commission=5×(48,000× .075)

Commission=5×3600

Commission=$18,000

Commission for the next three years

Commission=3×(48,000 ×.05)

Commission=3×2,400

Commission=$7,200

Commission for the final two years

Commission=2×(48,000 ×.035)

Commission=2×1,680

Commission=$3,360

Gross income commission:

Gross income commission=$18,000+$7,200+$3,360

Gross income commission=$28,560

Inconclusion her gross income from this commission over the life of the lease is $28,560.

Learn more about gross income commission here:brainly.com/question/24825618

3 0

3 years ago

Fue la razón principal para que estalbra la Revolución

levacccp [35]

Answer:

Explanation:

¿Cuáles fueron las principales causas de la Revolución Americana? La Revolución Americana fue causada principalmente por la oposición colonial a los intentos británicos de imponer un mayor control sobre las colonias y hacerles pagar a la corona por defenderlas durante la Guerra de Francia e India (1754-1763).

6 0

2 years ago