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stepladder [879]
3 years ago
7

Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued

$800,000 of 10-year, 6% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1. Issued the bonds for cash at their face amount. Nov. 1. Paid the interest on the bonds. Dec. 31. Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Dec. 31
Business
1 answer:
Mila [183]3 years ago
3 0

Answer:

The Journal Entry is shown below in the explanation section

Explanation:

The first step to take is to make use of the Journal entry.

Journal Entries for issuing Bonds

1 May       Cash                            800,000

               Bonds Payable                                              800,000

1 Nov       Interest expense          24,000

               Cash                                                               24,000

               (800,000* 6%*6/12)

31 Dec    Interest expense            8000

              Interest Payable                                               8000

              (800,000* 6%* 2/12)

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Answer:A. assumes that demand for loanable funds increases with supply remaining unchanged

Explanation:

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7 0
3 years ago
Which of the following issues can be offered to the public under the 1933 Act?
dedylja [7]

Answer:

Which of the following issues can be offered to the public under the 1933 Act?

1. An exempt security.

2. A security registered under the Act.

Explanation:

The security's act of 1933 was formulated and passed into law in 1933 to protect investors after the stock market crash of 1929. The law had two major objectives; to enable transparency especially in the financial statements so that investors can make decisions after considering all aspects and also to provide regulations against misrepresentation to discourage cases of fraud in the securities markets.

The security's act of 1933 provided legislation on the sale of securities which was initially governed by the state laws. The law required the companies to register with the Securities and Exchange Commission (SEC) for full disclosure to potential investors. The information is provided to SEC and the potential investors in the form of a prospectus and a statement of registration.

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2. A security registered under the Act.

However, the SEC does not approve a prospectus therefor issue number three is not true.

3 0
3 years ago
Professional organizations and producer groups have an incentive to a. encourage advertising in order to enhance competition on
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Professional organizations and producer groups have the incentive to restrict advertising in order to reduce competition on the basis of price.

Advertising has the power to influence the tastes of the consumers of a product. Effective restrictions on advertising also helps to raise the profit that a business makes.

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8 0
3 years ago
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Answer:

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Growth rate = 7.5%

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Sales after 8 year = Current sales x (1+g)^{n}

Sales after 8 year = $ 525 million x (1+7.5/100)^{8}

Sales after 8 year = $ 525 million x (1+0.075)^{8}

Sales after 8 year = $ 525 million x (1.075)^{8}

Sales after 8 year = $ 525 million x 1.783477826

Sales after 8 year = $ 936.33 million

6 0
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