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3 years ago

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

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 operating and maintenance expenses for a mining machine are expected to be $11,880 in the first year and increase by $864 pe

nalin [4]

Answer:

The answer is " $\$16,441$ ".

Explanation:

First-year operational and maintenance costs $= \$11,880$ .

Operating and repair costs increase inwards $=\$864$ for the first year

N =15 years machine life

Interest $I = 10\%$ annually combined

Please find the image file.

Its single payment sequence is now provided by:

$Amount=(\text{15-year system quantity})\times (\frac{\text{Rate of interest}}{(1-(1+ \text{Rate of interest})- n))}$

$= \$522,371.3236 \times (\frac{0.1}{(1-(1+0.1)-15)})\\\\$

Uniform payment sequence $=\$16441.2477 \approx\$16,441$

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3 years ago

You are planning your retirement in 10 years. You currently have $162,000 in a bond account and $602,000 in a stock account. You

UNO [17]

Answer:

Amount withdraw each year = $ 186,991.24

Explanation:

Amount accumulate at the time of retirement = FV of Current Investment in Bond + FV of Current Investment in Stock + FV of annuity deposited in bond

Amount accumulate at the time of retirement = 162000 x (1+7.5%)^10 + 602000 x (1+11%)^10 + 7800 x ((1+7.5%)^10 -1) / 7.5%

Amount accumulate at the time of retirement = $ 2,153,565.83

Amount withdraw each year = Amount accumulate at the time of retirement/Annuity factor

Amount withdraw each year = 2153565.83 / ((1-(1+6.75%)^-23) / 6.75%)

Amount withdraw each year = $ 186,991.24

7 0

3 years ago

After years of research had been conducted at significant cost, Blanco Chemical Company determined a fertilizer they had been de

vodka [1.7K]

Answer:

as a "Deferred Development Cost" on the Balance Sheet.

Explanation:

IAS 38.57 QUOTED

"Development costs are capitalised only after technical and commercial feasibility of the asset for sale or use have been established. This means that the entity must intend and be able to complete the intangible asset and either use it or sell it and be able to demonstrate how the asset will generate future economic benefits"

The cost is measured (500,000) has the intention and resources to complete the asset and is possible to bring into production so it is possible to capitalize it

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4 years ago

Read 2 more answers

The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account fo

Licemer1 [7]

Answer:

Accounting equation is as follows:

Assets = Liabilities + Stockholder's Equity

(a) Services worth of $47,000 provided on account which increases the accounts receivable which is a part of assets and increases service revenue which is a part of equity.

Assets = Increases ($47,000)

Stockholder's Equity = ($47,000)

(b) Received cash from the customers for services provided on account.

This increases the cash which is a asset and reduces the accounts receivable with the same amount.

Assets = Increases ($47,000) ⇒ Cash

Assets = Decreases ($47,000) ⇒ Accounts receivable

(c) Purchasing a bike by signing a note would increases the notes payable which is a liability and increases the Equipment which is a asset.

Assets = Increases ($32,000) ⇒ Equipment

Liabilities = Increases ($32,000) ⇒ Notes payable

(d) This will reduce the cash which is an asset and increases the utility expense which lead to reduce the equity.

Assets = Decreases ($4,700) ⇒cash

Stockholder's Equity = ($4,700) ⇒ Utility expense

8 0

3 years ago

Stock prices follow a random walk with a trend because:__________

Bumek [7]

Answer:

Stock prices follow a random walk with a trend because:__________

d. stock prices are based on both future profits and expectations about future profits and gradually rise over time.

Explanation:

The random walk theory of the stock price movement states that there is no observable pattern or trend to the movement of a stock price. It is, therefore, impossible to use the past movement or trend of a stock price to predict its future movement. This means that the wise investor should invest in the market portfolio to reflect more closely the movement of stock prices in the market instead of investing in a single stock or market security.

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3 years ago