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Bezzdna [24]
3 years ago
15

g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-

year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.
Business
1 answer:
avanturin [10]3 years ago
7 0

Answer:

Explanation:

a

Cash 20811010

Bonds payable 20000000

Premium on Bonds payable 811010

b

Interest expense 818899

Premium on Bonds payable 81101 =811010/5*6/12

Cash 900000 =20000000*9%*6/12

c

The market rate of interest will be lower than the contract rate of interest.

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Q 4.26: on december 31, 2017, before any year-end adjustments, canterbury shoe repair's prepaid insurance account had a balance
melamori03 [73]

<u>Calculation of adjusted balance for prepaid insurance at December 31, 2017:</u>


It is given that on December 31, 2017, before any year-end adjustments, Canterbury shoe repair's prepaid insurance account had a balance of $3,500. It was determined that $2,200 of the prepaid insurance had expired.

So the adjusted balance for prepaid insurance at December 31, 2017, shall be (3500-2200) = <u>$1,300</u>




3 0
3 years ago
No matter what you do professionally, you should create and follow a ____. A. Resume
seraphim [82]
The answer is B. career plan
5 0
2 years ago
A bond with par value of $1,000 has an annual coupon rate of 4.8% and currently sells for $970. What is the bond’s current yield
podryga [215]

Answer:

The Bond's Current yield = 4.95%

Explanation:

Annual coupon = Value of Bond * Annual Coupon rate

Annual coupon =  $1000 * 4.8%

Annual coupon =$48

The Bond Current yield =Annual coupon / Current price

The Bond Current yield =  $48 / $970

The Bond Current yield = 0.049485

The Bond Current yield = 4.9485

The Bond Current yield = 4.95%

8 0
3 years ago
Game theory is necessary to understand which kinds of markets? (i) perfectly competitive (ii) monopolistically competitive (iii)
Karo-lina-s [1.5K]
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3 0
3 years ago
PA4-3 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] Harbour Company makes two mod
kramer

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Basic production information follows:

Harbour has a monthly overhead of $184,260

The number of machine-hours:

Home: 1,600

Work: 1,200

Total: 2,800

To calculate the allocated overhead, first, we need to calculate the overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 184,260/ 2,800= $65.81 per machine hour

Now we can allocate the overhead using the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Work:

Allocated MOH= 65.81*1,600= $105,296

Home:

Allocated MOH= 65.81*1,200= $78,972

8 0
3 years ago
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