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
jok3333 [9.3K]
3 years ago
7

On March 1, 2021, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2021, for $99 million (plus accru

ed interest). The bonds mature on December 31, 2040, and pay interest semiannually on June 30 and December 31. Brown-Ferring’s fiscal period is the calendar year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds by Brown-Ferring.
Business
1 answer:
Digiron [165]3 years ago
8 0

Answer and Explanation:

1. The amount of the accrued interest rate is

= Principal × rate of interest × time period

= $100,000,000 × 12% × 2 months ÷ 12 months

= $2,000,000

The 2 months are considered from December 31 to March 31

2. And, the journal entry is

Cash Dr $101,000,000 ($99,000,000 + $2,000,000)

Discount on bond payable $1,000,000

       To Bond payable $100,000,000

        To Interest payable $2,000,000

(being the issuance of the bond is recorded)

Here it debited the cash as it increased the assets and credited the bond payable and interest payable as it also increased the liabilities

You might be interested in
One of the advantages associated with television as an advertising medium is that it:
Anastaziya [24]
It has a bigger audience and reaches put to people of all ages
4 0
2 years ago
Trendown inc. has launched a plan to completely transition from a clothing retailer to a cosmetic brand by the end of the year.
inn [45]
This is an example of "proximal goal".

Proximal objectives are best characterized as here and now and are instrumental in accomplishing distal objectives in which are long haul. The proximal objectives are the giving wellsprings of extra data in regards to exhibitions that isn't uncovered with a distal objective. It is basic that proximal objectives are more sensible to achieve the fulfillment on account of the time hole in getting the objectives. For a complex task, it would not bode well to have distal objectives set up in light of the fact that it at that point would set aside a long span of opportunity to close outcomes in a snappy way.
4 0
3 years ago
Payday loans could be considered
Molodets [167]
C. subprime lending

Its not something you want to do all of the time
7 0
3 years ago
Which of the following is an example of representative money?
Leto [7]
"Representative money<span> is an item such as a token or piece of paper that has no intrinsic value but can be exchanged on demand for a commodity that does have intrinsic value, such as gold, silver, copper, and even tobacco" Google.

</span>C) A check. 

5 0
3 years ago
Read 2 more answers
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
tatuchka [14]

Answer and Explanation:

Economy is divided into two main fields: <em>Microeconomics and Macroeconomics</em>. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:

A) <em>The effect of government regulation on a monopolist's production decisions (Macroeconomics). </em>

B) <em>The optimal interest rate for the Federal Reserve to target (Macroeconomics). </em>

C) <em>The government's decision on how much to spend on public projects (Macroeconomics).</em>

4 0
3 years ago
Other questions:
  • Kelly and tim jarowski plan to refinance their mortgage to obtain a lower interest rate. they will reduce their mortgage payment
    15·1 answer
  • Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
    11·1 answer
  • Brianna is giving a speech on job specialization for her business class. She will most likely tell the class that one of the rea
    15·1 answer
  • Vin diesel owns the fredonia barber shop. he employs 7 barbers and pays each a base rate of $1,380 per month. one of the barbers
    10·1 answer
  • "In a management development program, Trudy spends 3 months visiting customers, 3 months in HR, and 3 months in IT. This process
    5·1 answer
  • Which of the following statements is​ correct?A. Actual investment equals planned investment when inventories rise. B. Actual in
    5·1 answer
  • Relevant Range and Fixed and Variable Costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of
    5·1 answer
  • Jones Electric Motors uses a Kanban system to make motors for several garage door
    10·1 answer
  • What part of the cover letter explains how the applicant’s qualifications meet the needs of the company?
    11·2 answers
  • Treating people within an organization fairly and taking actions that do not discriminate against people in protected classes on
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!