Juan would like to give his

Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1

Lena [83]

Answer:

(a) Jan 1 2020

Dr Cash $612,000

Cr Premium on bond payable $12,000

Cr Bond payable $600,000

(b) July 1 2020

Dr Bond interest expense $29,700

Dr Premium on bond payable $300

Cr Cash $30,000

(c) Dec 31 2020

Dr Bond interest expense $29,700

Dr Premium on bond payable $300

Cr Bond interest payable $30,000

Explanation:

Celine Dion Company Journal entries

(a) Jan 1 2020

Dr Cash $612,000

( 600,000/100*102)

(The Face value of bond was actually $100 but was been issued at $102)

Cr Premium on bond payable $12,000

Cr Bond payable $600,000

(Bond issued at premium)

(b) July 1 2020

Dr Bond interest expense $29,700 (Interest 30,000- 300 amortization)

Dr Premium on bond payable $300 (12,000/40), 20 years = 40 half years

Cr Cash $30,000

(600000*10%*6/12)

( To record period interest payment and premium amortization.)

(c) Dec 31 2020

Dr Bond interest expense $29,700 (Interest 30,000- 300 amortization)

Dr Premium on bond payable $300 (12,000/40), 20 years = 40 half years

Cr Bond interest payable $30,000 (600000*10%*6/12)

( To record period interest accrual and premium amortization.)

6 0

3 years ago

Read 2 more answers

the narnian stock market had a rate of return of 45% last year, but the inflation rate was 30%. what was the real rate of return

Virty [35]

The annual percentage of profit on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of a particular sum of money over time.

The investor can calculate how much of a nominal return is real return by adjusting the nominal return to account for inflation.

Real rate of return is one plus nominal rate of return.

(1 plus the inflation rate) (1 plus 0.45 = (1 plus 0.30)

(1 + rate of inflation)

The inflation rate is equal to [(1 + 0.45 / (1 + 0.30)]. 1 Inflation rate equals 0.1154 percent, or 11.54%

Real rate of return has the drawback that its value is unknown until after the event has taken place. That is to say, inflation is a trailing indicator for any particular period, meaning it can only be measured after the relevant period has ended.

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6 0

2 years ago

Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal

Elden [556K]

Answer:

Debit Contingent Legal Expense $500,000; credit Contingent Legal Liability $500,000.

Explanation:

The Journal entry with their narration and explanation is shown below:-

When the contingent liability loss is probable and the liability can be recorded, the law suits loss in probability and the cost can be calculated, therefore the following entry for the potential loss is passed

Contingent legal expense Dr,$500,000

To Contingent legal liability $500,000

(Being potential loss is recorded)

4 0

4 years ago

What is the name for the journey that brought most enslaved africans to the colonies? slave auction indentured service internati

Ivenika [448]

Africans were successively delivered to the regions depicted in blue, in what became called the "Middle Passage".

The "middle passage," which brought the slaves from geographical region to the West Indies, might take three weeks. The Transatlantic (Triangular) Trade involved many continents, plenty of cash, some cargo and sugar, and lots of African slaves.

Historians estimate that about a million enslaved people were sold and moved round the country between 1808 and therefore the abolition of slavery in 1865. This internal movement of enslaved people is termed the Second Middle Passage.

The first slave traffic voyage from the American colonies sailed out of Massachusetts. The ship Desire left Salem in 1637, carrying Native American captives from the Pequot War to be sold as slaves within the Caribbean. This refers to the voyage of slaves from Africa, who were forced over to land.

European powers, aided by locals, captured the slaves and Caribbean traders received the slaves in exchange for goods from earth.. Commercial goods from Europe were shipped to Africa available and traded for enslaved Africans.

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6 0

2 years ago

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should t

sertanlavr [38]

Answer:

To treat this in the bank reconciliation, the difference of $45 is deducted from the balance per bank.

Explanation:

Based on the information given;

The amount recorded (as a deduction) in the books was in excess of $45 being the difference between the actual amount $749 and the erroneous amount recorded $794.

As such, to reconcile the bank statement balance to the balance in the books, the difference $45 is deducted from the balance per bank.

However, in the computation of the book balance the excess amount $45 is added to the book balance to correct the error.

3 0

4 years ago