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
Effective _______ is when customers can seamlessly search for a fashion brand merchandise on their smartphones, order the mercha
laila [671]

Answer:

Omnichannel distribution

Explanation:

Omnichannel distribution from the Latin word "Omni" could mean every distribution.

Omnichannel distribution is a type of distribution that allows customers to make an order online through their phones and laptops and make purchases in a brick-and-motar store. It provides customers with various options of making purchases.

Omnichannel distribution enhances good customer relations and it provides customers with different Shopping experiences. It makes it easier for customers to make an order as well as make a complaint.

It is a method of distribution, promotion and marketing of goods to customers using various medium such as phone calls, emails, websites, mobile applications, brick-and-motar store.

3 0
3 years ago
Elaborate on the meaning of contemporary socio-economic issues.​
saul85 [17]

Answer: See explanation

Explanation:

Contemporary Socio-economic issues are the challenges that are faced by the society. It should be noted that these problems and challenges have s negative impact on the economy and the society as a whole.

Some of the contemporary socio-economic issues that are faced by the society are poverty, corruption, illteracy, unemployment, etc.

These issues poses a challenge to the government and government seek ways to address them.

4 0
3 years ago
Which employer pension plan has an individual account for each employee?
Cerrena [4.2K]
Defined contribution plan
5 0
4 years ago
Read 2 more answers
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
malfutka [58]
If you need to indicate the missing ammount of each letter in the grahp then it will be like follows:
 For the first case:
A = $9,600 + $5,000 + $8,000 = $22,600$22,600 + $1,000 – B = $17,000
B = $22,600 + $1,000 – $17,000 = $6,600$17,000 + C = $20,000
C = $20,000 – $17,000 = $3,000
D = $20,000 – $3,400 = $16,600
<span>E = ($24,500 – $2,500) – $16,600 = $5,400
</span><span>F = $5,400 – $2,500 = $2,900
</span>And now for the second case:
G + $8,000 + $4,000 = $16,000
G = $16,000 – $8,000 – $4,000 = $4,000$16,000 + H – $3,000 = $22,000
H = $22,000 + $3,000 – $16,000 = $9,000(I – $1,400) – K = $7,000(I – $1,400) – $22,800 = $7,000
<span>I = $1,400 + $22,800 + $7,000 = $31,200
</span>J = $22,000 + $3,300 = $25,300
K = $25,300 – $2,500 = $22,800$7,000 – L = $5,000
<span>L = $2,000</span>
8 0
3 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
4 years ago
Read 2 more answers
Other questions:
  • In an organization with a(n)__________, the parent company and all the subsidiaries work together in designing policies, procedu
    5·1 answer
  • Improving performance and striving for a better career is an example of
    14·1 answer
  • John took a call from a customer who wanted to purchase 1,000 shares of a company’s stock, which just went public. What is John’
    13·2 answers
  • Quantitative research is most likely to be used when_________.A. the objective is to identify new ideas and thoughts for a produ
    13·1 answer
  • The direct write-off method of accounting for uncollectible accounts Group of answer choices a) emphasizes cash realizable value
    14·1 answer
  • In a(n) ________, an intensive research technique, a company invites six or more people typical of the target market to a sessio
    12·1 answer
  • One drawback of mailed marketing survey is
    5·1 answer
  • Penn Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the begi
    13·1 answer
  • How are employment and education related.<br>​
    9·1 answer
  • A measure of risk-adjusted performance that is often used is the Sharpe ratio. The Sharpe ratio is calculated as the risk premiu
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!