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snow_lady [41]
4 years ago
15

Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a ten-year term and pay interest semiannually on Ju

ne 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds. Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 1/1/12 8,640,967 06/30/2012 300,000 345,639 45,639 8,686,606 12/31/2012 300,000 347,464 47,464 8,734,070 06/30/2013 300,000 349,363 49,363 8,783,433 12/31/2013 300,00 351,337 51,337 8,834,770
What is the interest expense on the bonds in 2012?

A .$693,103.

B $600,000.

C $345,639.

D $347,464.
Business
1 answer:
jeyben [28]4 years ago
7 0

Answer:

B. $600,000

Explanation:

The computation of the interest expense on the bond for the year 2012 is shown below:

= Interest expense as on 30 June 2012 + interest expense as on December 31 2012

= $300,000 + $300,000

= $600,000

For computing the interest expense for the year 2012, we added the interest expense of June 30 and for December 31 of 2012 only so that the correct amount could come

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Explanation:

The most suitable alternative is the letter C.<u> </u>The Theory X style of management.

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2 years ago
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2 years ago
During the month of June, Betty Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 P
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Answer:

Betty Incorporated

Journal Entries:

June 3:

DR Inventory $7,100

CR Accounts Payable (North Inc.) $7,100

To record the purchase of goods on account with terms 2/10, n/30.

June 5:

DR Accounts Payable (North Inc.) $2,600

CR Inventory $2,600

To record the return of goods on account.

June 6:

DR Inventory $2,500

CR Accounts Payable (South Corp.) $2,500

To record the purchase of goods on account with terms 2/10, n/30.

June 11:

DR Accounts Payable (North Inc.) $4,500

CR Cash Account $4,410

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June 22:

DR Accounts Payable (South Corp.) $2,500

CR Cash Account $2,500

To record the payment of balance owed to South Corp.

Explanation:

The trade terms 2/10, n/30 mean that both North Inc. and South Corp. offered 2% cash discounts on amount paid by Betty Incorporated if it could settle its bills within 10 days.  The net allowed credit days are 30 days, after which Betty Incorporated could be charged interest for late payment.  It did not utilize the discount offered by South Corp. as it paid its bills after 16 days instead of within 10 days as stated in the trade terms.

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_______________ ensures that all relevant financial information is reported. (select an option)
Wewaii [24]

Answer:

B. Full disclosure principle

Explanation:

Full disclosure principle ensures that all relevant financial information is reported

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