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Sonja [21]
3 years ago
11

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $840,000 of 10-year, 4

% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year.
May 1 Issued the bonds for cash at their face amount.
Nov. 1 Paid the interest on the bonds.
Dec. 31 Recorded accrued interest for two months.
Business
1 answer:
nalin [4]3 years ago
5 0

Answer and Explanation:

The journal entries are shown below:

On May 1

Cash   $840,000  

              To 4% Bonds Payable  $840,000

(Being the issued of the face value is recorded)  

On Nov 1

Interest Expense $16,800  

         To Cash A/c  $16,800

(Being the interest expense is recorded)

The computation is shown below:

= $840,000 × 4% × 6 months ÷ 12 months

= $16,800

On Dec 31

Interest Expense $5,600  

           To Interest Payable  $5,600

(Being the accrued interest is recorded)

The computation is shown below:

= $840,000 × 4% × 6 months ÷ 12 months

= $5,600

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During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag
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Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

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TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

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Answer:

C.

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