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
kolbaska11 [484]
3 years ago
8

Dunphy Company issued $20,000 of 8.5%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and D

ecember 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30.
Business
1 answer:
Rashid [163]3 years ago
4 0

Answer:

(a)

January 1  Cash                      20000 Dr

                      Bonds Payable      20000 Cr

(b)

June 30    Interest expense    850 Dr

                          Cash                       850 Dr

Explanation:

a.

The bonds are issued at par value thus full cash equal to the par value of these bonds will be received on the issuance date.

b.

The ineterst is paid at 8.5% annually. The annual interest oayment equals 20000 * 0.085 = 1700

As this is paid semiannually in equal installments, the semi annual payment for interest on June 30 will be 1700 / 2 = $850

You might be interested in
Present and Future Values for Different Periods:
DiKsa [7]

Answer:

1. $636

2. $674.16

3. $566.04

4. $534

Explanation:

PV = FV ÷ (1 + r/n)^(t × n)........(1)

PV = present value

FV = Future value

r = rate per period

t = number of years

n = number of compounded period per year

FV = P(1 + r/n)^(t×n)...............(2)

FV = Future value

P = principal

r = rate per period

n = number compounded period per year

t = number of year

NO 1.

P= $600

t = 1

n = 1

r = 6% = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(1 × 1) = $636

NO 2

P = $600

n = 1

t = 2

r = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(2 × 1) = $674.16

NO 3.

FV = $600

r = 0.06

t = 1

n = 1

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04

NO 4.

FV = $600

r = 0.06

n = 1

t = 2

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534

8 0
3 years ago
List three things you can do to improve job satisfaction
andrew-mc [135]

1. Respectful treatment of all employees at all levels

2. Trust between employees and senior management

3. Job security

Hope that helps :)

7 0
3 years ago
Read 2 more answers
True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is
gavmur [86]

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

#SPJ1

5 0
2 years ago
In the last decade or so, there has been a dramatic expansion of small retail convenience stores (such as 7-Eleven, Kwik Shop, a
Vladimir79 [104]

Answer:

yes                                                                                                                                                                                                                  

Explanation:

        kjdfehyqt7uagfbjsnckmlojwuy8r3v thrbjdknmlko                          

3 0
3 years ago
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 perce
LiRa [457]

The nominal interest rate will rise by 3%.

Nominal interest rate is the sum of real interest rate and inflation rate. Real interest rate is interest rate that has been adjusted for inflation. Inflation is the persistent rise in general price levels.

Nominal interest rate in year 2 = real interest rate + inflation rate

6% + 3% = 9%

Nominal interest rate in year 1 = 6%

Change in nominal interest rate = 9% - 6% = 3%

To learn more, please check: brainly.com/question/21323568

6 0
2 years ago
Other questions:
  • The generic value chain consists of​ ________ activities and four support activities.
    8·1 answer
  • I am Stuck Please Help
    9·1 answer
  • Suppose the price of Vanilla Coke increases by 9% and quantity demanded falls by 13% overall, but only 4% for loyal Coca-Cola cu
    11·1 answer
  • Grameen Bank extends credit to the very poor to give them the opportunity to build better lives. Other businesses target poor pe
    7·1 answer
  • The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
    12·1 answer
  • Which consideration must a society address when deciding for whom to produce a potentially scarce or limited
    15·2 answers
  • It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year u
    15·1 answer
  • This is homework form me a teacher have you drawn a cool awesome drawling
    14·1 answer
  • in an audit of inventories, an auditor would least likely verify that all inventory owned by the client is on hand at the time o
    8·1 answer
  • What indicator provides the clearest indication that an economy is experiencing deflation?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!