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
ICE Princess25 [194]
3 years ago
6

On January 1, a company issues bonds dated January 1 with a par value of $290,000. The bonds mature in 5 years. The contract rat

e is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $302,371. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)
Business
1 answer:
Alenkasestr [34]3 years ago
5 0

Answer:

the journal entry used to record the issuance of the bonds is:

January 1, $290,000 in bonds payable issued

Dr Cash 302,371

    Cr Bonds payable 290,000

    Cr Premium on bonds payable 12,371

since the premium will be amortized using the straight line method, the $12,371 must be divided by 10 (10 semiannual payments) = $1,237.10

the journal entry required to record the first coupon payment is:

June 30, first interest payment on bonds payable

Dr Interest expense 8,912.90

Dr Premium on bonds payable 1,237.10

    Cr Cash 10,150

You might be interested in
What is pure competition?
liubo4ka [24]
It is the third one
5 0
3 years ago
Read 2 more answers
On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,500 units of Comfort Office Keyboard to one of its clients
madam [21]

Answer:

A. 2

B. May 1, 2021

Dr Cash $94,600

Cr Deferred revenue $89,870

Cr Deferred revenue-coupons $4,730

C. May 1, 2021

Dr Cash $94,600

Cr Deferred Revenue $94,600

Explanation:

A. Based on the information given the numbers of PERFORMANCE OBLIGATIONS that are in this contract is 2 which are:

KEYBOARD and CUSTOMER OPTION FOR FUTURE DISCOUNT

B. Preparation of the journal entry that Meta would record on May 1, 2021.

May 1, 2021

Dr Cash $94,600

Cr Deferred revenue $89,870

($94,600-$4,730)

Cr Deferred revenue-coupons $4,730

(5%*$94,600)

C. Preparation of the journal entry that Meta would record on May 1, 2021

May 1, 2021

Dr Cash $94,600

Cr Deferred Revenue $94,600

8 0
3 years ago
On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvements 1. Building
Leviafan [203]

Answer:

Land (Dr.) $1,800,000

Land Improvements $540,000

Building 2 $660,000

Building 1 demolish expense $346,400

Land grading expense $187,400

Building 3 construction cost $2,242,000

Land 2 improvement cost $168,000

Cash (Cr.) $22,143,800

Explanation:

Mitzu Co. has paid lump sum amount for 2 buildings and land. The building 1 has no value so its value is considered as zero and all the amount will be attributed to land and building 2. The company has also incurred costs for the demolish of building 1 which will be charged in the books of accounts as one off expense.

8 0
2 years ago
You volunteer to participate in a game in which you are told that you and another participant, whom you will never meet but is p
evablogger [386]
It's the <span>prisoner's dilemma.</span>



Hope this satisfies your query! Have a good one :)
3 0
3 years ago
2. Which of the following is part of a salesperson's voice characteristics?
omeli [17]

Answer:

The correct answer is option e. All of the above

Explanation:

A sales person is an important part of the sales of a product. It is dependent on a sales person oh how he gethers customers and increased the slaes. How he speaks, is a major part of his job.

The major ingredients of a salesperson's voice are the use of inflections at the end of sentences , the speed with which he speaks must be at the rate where each word comes out clear and understandable, the pitch and volume of voice is as so to reach the customer effectively and the way he articulates his words.

7 0
3 years ago
Other questions:
  • Raner, Harris, &amp; Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm
    10·1 answer
  • Sonic Corp. manufactures ski and snowboarding equipment. It has estimated that this year there will be substantial growth in its
    7·2 answers
  • Do certain kinds of firms need to stress particular areas<br> of operations management? Explain.
    10·1 answer
  • This year Baldwin achieved an ROE of 5.9%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) n
    9·1 answer
  • Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,100,00
    7·1 answer
  • Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very comp
    8·1 answer
  • Which of the following would be a producer?
    15·2 answers
  • Economic growth is __________.
    10·1 answer
  • Kristina has to deliver twenty 100-word marketing "blurbs" by the end of the week. Which of the following aspects of her project
    8·2 answers
  • Which of the following survey response methods is the most difficult for researchers to code for evaluation:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!