1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erastovalidia [21]
3 years ago
10

Splish Brothers Inc. issues $4.8 million, 5-year, 7% bonds at 102, with interest payable on January 1. The straight-line method

is used to amortize bond premium. Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2017, assuming no previous accrual of interest.
Business
1 answer:
Radda [10]3 years ago
5 0

Answer and Explanation:

The Journal entries are shown below:-

Interest expense Dr, $316,800

Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)

            To Interest payable $336,000    ($4,800,000 × 7%)

(Being interest expense and bond premium amortization is recorded)

Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities

You might be interested in
An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is
SIZIF [17.4K]
The answer is a valid contract. A valid contract occurs when both parties has expressed or had shown agreement when engaging to certain services or products as means of showing that they both have negotiate and came to an understanding of agreement with what they are pertaining to in which is shown above as the adults involved has an agreement of paying the bicycle that shows a valid contract.

5 0
3 years ago
Jamal, the HR Director for a growing marketing firm, announces that the firm is planning to implement the integrated talent mana
Ber [7]

Answer:

c.

Explanation:

Based on the scenario being described it can be said that the action that should be expected to be performed would be connecting multiple processes such as performance management, training and development, and career management. This is because the Integrated Talent Management (TM) approach focuses on all of the HR processes in order to attract, onboard, develop, engage, and retain high-performing employees.

8 0
3 years ago
Select the correct answer
arlik [135]
It is B. passive income
5 0
3 years ago
Read 2 more answers
What Is a fixed asset that has a value at the time to be retired from service called?​
just olya [345]
More explanationLike pics or something
4 0
3 years ago
Bond valuationlong dashSemiannual interest Find the value of a bond maturing in 4 ​years, with a ​$1 comma 000 par value and a c
algol [13]

Answer:

824.28

Explanation:

Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:

Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8

Putting all the number together, we have

Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8

                  = 824.28

7 0
3 years ago
Other questions:
  • In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income i
    10·1 answer
  • Bank of America customers select their own three- digit personal identification number (PIN) for use at ATMs.
    13·1 answer
  • Brief Exercise 5-3 Flint Company buys merchandise on account from Windsor, Inc.. The selling price of the goods is $1,050, and t
    14·1 answer
  • When paraphrasing or summarizing, it is not necessary to give credit to the original source if you use your own words.
    12·2 answers
  • Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecord
    11·1 answer
  • The division of activities into unit-level, batch-level, product-sustaining level, and facility-level categories is commonly kno
    11·1 answer
  • Suppose your company needs $18 million to build a new assembly line. Your target debt-equity ratio is .8. The flotation cost for
    14·1 answer
  • Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustain
    14·1 answer
  • Rick works off commission. He earns 10 percent of all manufacturing equipment he sells. If he made a sale of $9,000, how much wa
    6·1 answer
  • The purchase of new car is included in: investment expenditure consumption expenditure on services consumption expenditure on no
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!