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
Harlamova29_29 [7]
3 years ago
5

Garcia Company issues 11.0%, 15-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the

annual market rate for these bonds is 9.0%, which implies a selling price of 114. Prepare the journal entry for the issuance of these bonds for cash on January 1.
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

Entries are given below

Explanation:

The entry that should be made on January 1 would be

Cash                                 501,600(w1)            Debit

Premium on bonds         61600(w2)              Credit      

Bonds payable                440000                   Credit      

<u>Working 1 </u>

Cash proceeds = $440,000/100 x $114

Cash proceeds = $501600

<u>Working 2 </u>

Premium = selling price of bond - Face value of the bond

Premium =  $501,600 - $440,000

Premium = 61600

You might be interested in
The 5.5 million vinyl long-playing (LP) records sold in the United States per year pales in comparison with the 1.26 billion dig
SVEN [57.7K]

Answer:

D. decline

Explanation:

Based on the information provided within the question it can be said that the vinyl records in this scenario seem to be in the decline stage of the product life cycle. This stage refers to when a product has already peaked in performance and sales begin to fall and production will ultimately come to a halt. This is what is happening to the LP stores since digital downloads have taken over and the only people buying LP's now are die-hard consumers.

8 0
3 years ago
People want to view their leaders as ethical, fair, and just, especially with the public failing of high-level leaders in the pa
DaniilM [7]
This is a <span>strength of ethical leadership.
Ethical leadership refers to the fact that the leader takes into great consideration ethical beliefs of his subjects, as well as his own. He values other people's rights, beliefs, and values, and is overall a moral and a good leader, which is always a strength. 
</span>
5 0
3 years ago
Ralph’s Hardware updated its accounting system and agreed to purchase a computer system from a manufacturer, Bits and Bytes (BB)
Andrej [43]
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

4 0
4 years ago
Veronique and Lily each bought a piece of luggage that had the same price in different stores. The tables below shows how they w
mafiozo [28]

Answer:

D. Lily because her final cost, including finance charges, is less than Veronique’s.

Explanation:

just took the pre test

6 0
3 years ago
M&amp;M Proposition I with tax implies that:
Savatey [412]

Answer:

D. A firm's weighted average cost of capital decreases as the firm's debt-equity ratio increases.

6 0
3 years ago
Other questions:
  • Vicky asks walt, a cobbler, to repair a pair of boots. there is no discussion of a price, and vicky and walt do not sign any doc
    9·1 answer
  • Dextra Computing sells merchandise for $20,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires
    7·1 answer
  • Why is gunshot residue important for a forensic scientist? What are the potential complications with this type of evidence?
    10·1 answer
  • A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price
    13·1 answer
  • John and Jenny have been saving for two years to take their six children on a vacation to Disneyworld. They are surprised to fin
    15·1 answer
  • A portfolio analysis involves:________
    11·1 answer
  • In the LMN partnership, Lynn's capital is $60,000, Marty's is $80,000, and Nancy's is $70,000. They share income in a 4:3:3 rati
    5·1 answer
  • Ahnberg Corporation had 660,000 shares of common stock issued and outstanding at January 1. No common shares were issued during
    13·1 answer
  • Martin Corporation’s (a C corporation) bookkeeper told the owner that she could not have all the tax information ready for the a
    7·1 answer
  • A change in the dollar value of the british pound from $1. 60 to $1. 50 represents.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!