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mojhsa [17]
2 years ago
15

On June​ 30, Police Company issues 6 %​, 10​-year bonds payable with at face value of $ 100 comma 000. The bonds are issued at f

ace value and pay interest on June 30 and December 31. Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment on December 31.
Business
1 answer:
Fiesta28 [93]2 years ago
5 0

Answer:

The journal entry upon issuance of the bond is as follows:

Dr Cash             $100,000

Cr Bonds payable                 $100,000

to record issuance of bond for cash

Journal entry for semi-annual interest

Dr Interest expense       $6000

Cr Cash                                       $6000

Being payment of bond semi-annual interest

Explanation:

Upon issuance of the bond with face value and issue price of $100,000, the cash position of the Police company increases by $100,000, hence the cash account should receive a debit of $100,000, but the issue also implies increased debt obligation, as a result , the bonds payable account is also credited with the same amount.

Concerning, the interest payment, which is an outflow of cash, the cash account is credited and the interest expense account is debited as an increase in expense.

The amount of interest is $6000(6%*$100,000).

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Suppose that Portugal and Austria both produce beer and cheese. Portugal's opportunity cost of producing a pound of cheese is 3
Maksim231197 [3]

Answer:

Portugal and Austria

Comparative Advantage in the Production of Beer and Cheese:

1a. Portugal

b. Austria

2. a. 3 barrels and

b. 0.09 or 1/11 pounds

3.  A. 4 barrels of beer per pound of cheese

Explanation:

a) Data and Calculations:

Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer

Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer

Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4

b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria.  This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.

7 0
3 years ago
Consider a game in which three players must decide how much to contribute to fund a holiday party. Each player i ∈ {1, 2, 3} sel
grin007 [14]

Answer:

Hi,

What is your question exactly in this. :)

6 0
2 years ago
Question 4 Stacy wants to be able to run reports in QuickBooks Online that will tell her which vendors provide the best prices o
just olya [345]

Answer:

Create bill with product/service items > pay bills

Create expense with product / service items

Explanation:

Statement 1. Create bill with product/service items > pay bills

This will be a filter in the report that we want to generate because higher bill might include discounts that previously wasn't included in the report. This will help us determine which vendor is paying higher than the others.

Statement 1. Create expense with product / service items

This will help us to indicate which product or service is generating more value to the company for that particular vendor because specific cost related to the product or service will highlight how much it is profitable for the company. For example if the company is based US and wants to import its products from a vendor in china then the quality cost will be higher because we cann't control the quality which will increase the warranty claims. If we buy within US then the repair and maintenance cost would be lower because we will not be sending the defected product back to china.

6 0
2 years ago
__________ refers to a reduction in the proficiency needed to perform a specific job that leads to a corresponding reduction in
otez555 [7]
That would be "Job deskilling."  

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8 0
3 years ago
Read 2 more answers
Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $
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Explanation:

a) The Company shall have an income of $200 as interest Revenues and $2200 as imputed revenues(i.e. difference between actual income and market value of interest on loans.

Nevertheless the corporation shall also have the right to compensation incurred by the federal tax law at $2200 for wally and shall not be eligible for deduction under Federal Taxation Law.

b) Amount of gross income does Wally recognize if Pay More forgave the loan and interest on December 31:

Loan Amount            $ 20000

Interest Foregone      $   200

Imputed Interest         $ 2200

Total Amount            $22400

6 0
3 years ago
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