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Alinara [238K]
3 years ago
14

Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a $530,000 par value. The bonds pay interest on June 30 and Decem

ber 31 and are issued at a price of $575,210. The annual market rate is 6% on the issue date.
Requlrec:
1. Complete the below table to calculate the total bond interest expense over the bonds' life.
2. Prepare a straight-line amortization table for the bonds' life.
3. Prepare the journal entries to record the first two interest payments.

Business
1 answer:
Ket [755]3 years ago
6 0

Answer:

1. Total interest rate is $166,790

2. Refer to the attached file for the straight-line amortization table for the bonds' life.

3.

To record interest rate paid in 30th June 2018:

Dr Interest expenses                            16,679

Dr Premium on bond payable             4,521

Cr Cash                                                 21,200

To record interest rate paid in 31st Dec 2018:

Dr Interest expenses                            16,679

Dr Premium on bond payable             4,521

Cr Cash                                                 21,200

Explanation:

Total interest rate as followed : Interest payment - Premium on bond payable = 530,000 x 8% /2 x 10 - (575,210 - 530,000) =166,790.

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Answer:

True

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The unemployment rate is 42.85.

Explanation:

The formula to calculate the unemployment rate is:

Unemployment Rate = (Unemployed People / Total Labor) x 100 -- (1)

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Putting the values in equation 1,

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7 0
3 years ago
At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The
hammer [34]

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c. $5million

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Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par c
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