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bagirrra123 [75]
3 years ago
5

Bose Company issued $600,000, 14 % bond on January 1

Business
1 answer:
Tasya [4]3 years ago
6 0

Answer:

1) If bonds are issued as 100 entry will be

                                   Debit                                         Credit

Cash                            600,000

Bonds payable                                                              600,000

2) If bonds are issued at 95

                                     Debit                                        Credit

Cash                              570,000

Discount                          30,000

Bonds payable                                                               600,000

3) If bonds are issued at 105

Cash                               630,000

Bonds payable                                                                 600,000

Premium                                                                             30,000

4)

                                        Debit                                           Credit

Interest payable                42,000

Cash                                                                                    42,000

Explanation:

1) If the bonds are issued at 100 then the company will receive the same amount of cash as the face value so they will receive 600,000 cash and will owe the bond buyers 600,000 so they will debit 600,000 cash and credit 600,000 bonds payable.

2) If bonds are issued at 95 then the company will receive cash 95% of 600,000 which is 570,000 so they will debit 570,000 cash, 30,000 will debited as discount and 600,000 bonds payable.

3) If bonds are issued at 105 then the company will receive cash 105% of 600,000 which is 630,000 so they will debit 630,000 cash and will credit 600,000 bonds payable and 30,000 as premium.

4) The bonds are issued on January 1 and there is a journal entry of interest payment at July 1 so we assume that the bond has semi annual payments.

14% of 600,000 is 84,000 and we will divide it by 2 to find the semi annual payment which will be 42,000, so we will debit interest payable by 42,000 and credit cash by 42,000.

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The correct answer is choice D.

The Stockholders’ Equity section of the balance sheet includes stock, paid-iin capital and retained earnings.

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To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and
alekssr [168]

When deciding the cost of an insurance policy being applied to the customer, then the underwriting experts used the concept of data analytics.

Option C is the correct answer.

<h3>What is underwriting?</h3>

Underwriting is the act where the underwriters confirm the loan approval after analyzing the debt, income, and assets of the borrower.

The concept of data analytics is one of the processes applied to analyze the data along with collection and modeling. it helps the underwriters to figure out the conclusions based on the trends and patterns of the data.

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6 0
2 years ago
Aden is a small engine mechanic who earns a regular hourly rate of $15.68. For overtime, he earns time and a half on Saturdays a
garri49 [273]

Answer:

Total pay is : $909.44

Explanation:

$15. 68/2 = 7.84 times 8 = 627.20

15.68 times 2 = 31.36 times 7 = 219.52

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3 0
2 years ago
"Christie and Jergens formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership
Katen [24]

Answer:

The Christie and Jergens's respective shares are $92,500 and $42,500.

Explanation:

For computing the Christie and Jergens's respective shares, first, we have to compute the remaining income which is to be shared between these two partners. The computation is shown below:

= Net income - salary - interest on total capital

= $135,000 - $60,000 - 10% × ($300,000 + $400,000)

= $135,000 - $60,000 - $70,000

= $5,000

So, the remaining income would be divided equally between the partners

Now

Christie shares = Salary + interest on capital + remaining income

                         = $60,000 + ($300,000 × $10%) + $2,500

                         = $60,000 + $30,000 + $2,500

                         = $92,500

And, the Jergens shares  =  interest on capital + remaining income

                                          = ($400,000 × $10%) + $2,500

                                          = $40,000 + $2,500

                                          = $42,500

3 0
3 years ago
2. Explain how advertising and sales practices fed consumer demand during the late 1800s. What were the specific tactics used
erik [133]

Answer with its Explanation:

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8 0
2 years ago
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