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Vlada [557]
2 years ago
10

George's Hamburgers issued 5â%, â10-year bonds payable at 85 on Decemberâ 31, 2016. At Decemberâ 31, 2018, George reported the b

onds payable asâ follows:
Long-term Liabilities:
Bonds Payable $300,000
Less: Discount on Bonds Payable 36,000 $264,000
George's pays semiannual interest each June 30 and December 31.â(Assume bonds payable are amortized using theâ straight-line amortizationâ method.)
Requirement 1. Answer the following questions about
George's bondsâ payable:
a. What is the maturity value of theâbonds?â____
b. What is the carrying amount of the bonds at Decemberâ 31, 2018â?
____
c. What is the semiannual cash interest payment on theâ bonds?
â_____
d. How much interest expense should the company record eachâ year?
â_____
Requirement 2. Record the Juneâ 30, 2018â, semiannual interest payment and amortization of the discount.â(Record debitsâ first, then credits. Select the explanation on the last line of the journal entryâ table.)
Business
1 answer:
rodikova [14]2 years ago
5 0

Answer:

1. The maturity value is $300,000

2. The carrying amount of the bonds is at December​ 31, 2018 is $264,000

3.  Semiannual cash interest payment on the bond = $300,000 * 5% * 1/2 = $7,500

4. Discount on BP = $300,000 * 15% = $45,000

Straight line method amortization = $45,000 / ( 10*2 = 20) = $2,250

Interest Expenses = $7,500 + $2,250 = $9,750

Journal Entry                          Debit          Credit

Interest Expenses                 $9,750  

Discount on Bond Payable                      $2,250

Cash                                                           $7,500

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Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $7,000 Direc
Sav [38]

Answer and Explanation:

1. The classification of estimated manufacturing overhead is shown below:-

Direct materials =  Product cost

Direct labor = Product cost

Manufacturing overhead = Product cost

Selling expense = Period cost

2. The computation of total product cost for last month is shown below:-

= Direct materials + direct labors + manufacturing overhead

= $7,000 + $3,000 + $2,000

= $12,000

3. And, the unit product cost is

= Total product cost ÷ number of units

= $12,000 ÷ 4,000 units

= $3 per unit

5 0
3 years ago
Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per
hodyreva [135]

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0
3 years ago
Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted
Katena32 [7]

Answer:

Adjusted trial balance

Explanation:

In financial accounting, statement of cash flow can be regarded as a financial statement which give details of how changes that occur in balance sheet accounts as well as income have effect on cash as well as cash equivalents, it also helps in breaking down of analysis to operating as well as investing and other financing activities.

It should be noted that the following items are generally used in preparing a statement of cash flows;

✓Comparative balance sheets

✓Current income statement

✓Additional information

5 0
2 years ago
All of the following are characteristics of Weberian bureaucracy except:
azamat

Answer:

b. management is the same as the ownership of the organization.

Explanation:

Weberian bureaucracy is the term used for the bureaucracy concept introduced by Max Weber, the famous sociologist and economists. He clearly stated that for any kind of administration the basic need is to maintain some standard characteristics:

Which included hierarchy as basics, therefore, it clearly distinguished the management and ownership and both are on different hierarchy.

Therefore, the correct option is:

b. management is the same as the ownership of the organization.

6 0
3 years ago
Which of the following statements is CORRECT?
Kaylis [27]

A, B, D ,and E statements are correct

Explanation:

The main reason for the annual report is that it is utilized by investors when they expect future income and dividend from the company as well as the risks associated with those cash flows.

The statement of income shows the difference between the income and costs of a company–that is, its profits–over a given duration. Nevertheless, any income reported comes in cash and the expenditure reported always reflects cash expenditures. There will therefore be no substantial difference for the same period between a company's profits reported and its real cash flow.

Suppose all companies follow generally accepted standards of transparency. Two years ago, both companies started operations with similar fixed assets worth $1 million, and neither company sold either or purchased any of these properties. All firms would have to report to their balance sheets the same amount of net fixed assets as the statements are sent to creditors.

Assets other than currency are expected to produce cash over time and the amount of cash they generate will be the same as the amounts on the ledger.

5 0
3 years ago
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