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
Natasha_Volkova [10]
3 years ago
15

On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rat

e is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $346,096. The journal entry to record the first interest payment using the effective interest method of amortization is:
Business
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

Debit Interest Expense $17,304.80; credit discount on bonds payable $1,104.8; credit cash $16,200

Interest Expense A/c......................Dr $17,304.80

Discount on bonds payable A/c....Cr $1104.8

To Cash A/c............................Cr $16,200

Explanation:

Given the following :

Bond value = $346,096

Market rate = 10% = 0.1

Contract rate = 9% = 0.09

Par value = $360,000

Note : Semiannual payment = rate / 2

Calculating the cash value and interest expense:

Cash value :

Par value × contract rate

$360,000 × (0.09/2)

$360,000 × 0.045

= $16,200

Interest expense :

Bond value × market rate

$346,096 × (0.1/2)

$346,096 × 0.05

= $17,304.8

You might be interested in
You are the founder of Shadow Skateboards, and you are considering methods of gaining and sustaining a competitive advantage. Wh
bogdanovich [222]

Answer:

The correct option is A,devoting resources to researching and developing new products that will be more durable than competitors'

Explanation:

Creating sustainable advantage means that the company is able to do something very difficult for competitors to copy.

Sustainable advantage is not about cost reductions,is about a perceived  value added to products or services not seen anywhere else.

If customers upload their designs for the company to produce, it does not necessarily mean the product is fit for purpose, as the company does not have full control over it.

7 0
4 years ago
In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your ba
WINSTONCH [101]

Answer:

(B) subtract both values from balance according to books

Explanation:

Provided, that the check deposited in bank is NSF.

Therefore, it will not be cashed,

Although such balance was already added to book balance as per accounting records, therefore, such amount shall be subtracted from accounting balance.

Further bank provides the information of charges which was not considered earlier.

Therefore, such amount shall also be deducted from accounting records.

Thus both such amounts shall be deducted from balance according to books.

5 0
3 years ago
The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued =  70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares =  70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and  luney has issued =  70000 shares

so here  

we know that

luney has shares outstanding  = 70000 - 7000

luney has shares outstanding 63000

7 0
3 years ago
What information goes into a credit score
dimulka [17.4K]
Payment history, amount owed, length of credit history, types of credit used and new credit including credit inquiries.
3 0
3 years ago
Malcolm Industries recently hired a large number of workers for the company's new construction factory in Colorado. During the h
Arturiano [62]

The complete question should have been:

Malcolm Industries recently hired a large number of workers for the company's new construction factory in Colorado. During the hiring process, the management made a clear effort to recruit physically strong individuals because the work at the factory involves manual labor. The jobs need to be performed by individuals who have the energy and physical stamina to work for long hours. Which of the following surface-level characteristics did the company most likely concentrate on when selecting the new workers?

A.) Age

B.) Values

C.) Beliefs

D.) Religion

E.) Personality

Answer: Age.

Explanation:

Malcolm Industries made use of Age as the Surface Level Characteristic that determined who would be employed. A surface level characteristics can be defined as differences that individuals possesses that easily be identified when they are seen.

8 0
3 years ago
Other questions:
  • On March 15, American Eagle declares a quarterly cash dividend of $0.060 per share payable on April 13 to all stockholders of re
    14·1 answer
  • ABC Corporation stock is being sold in a primary offering. The total offering is $10,000,000, of which $7,000,000 is allocated t
    10·1 answer
  • A particular stock sells for $43.20 share and provides a total return of 11.6 percent. The total return is evenly divided betwee
    13·1 answer
  • In order for your colleagues to act immediately on your business message, the message needs to be
    13·1 answer
  • Refer to the original data.
    10·1 answer
  • The PIO’s primary responsibility to organizational leadership as an advisor is to: A. Be an intermediary between leadership and
    14·1 answer
  • What is the relationship between price and the quantity of gasoline demanded
    15·1 answer
  • A risk neutral monopoly must set output before it knows for sure the market price.
    6·1 answer
  • Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its cata
    7·1 answer
  • 5 Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellula
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!