Answer:
the journal entry to record bond issuance:
Dr Cash 1,444,000
Dr Discount on bonds payable 76,000
Cr Bonds payable 1,520,000
amortization of discount on bonds payable = $76,000 / 5 = $15,000
coupon payment = $91,200
total interest expense per year = $106,200
total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>
<u />
Bro i don't know this is my brothers college homework
Answer:
Current ratio is 2.5:1
Quick ratio 1.9:1
Explanation:
Current ratio =current assets/current laibilities:1
current assets =cash+marketable securities+accounts receivables+inventory
current assets=$225000+$115,000+$112000+$158,000
current assets =$610,000
current liabilities=accounts payable=$244,000
Current ratio=610000/244000
current ratio=2.5
:1
quick ratio =(current assets-inventory)/current liabilities:1
quick ratio=(610000-158000)/244000
=1.9:1
The current ratio suggests the company has liquid resources that is more than double of current liabilities which can used in discharging debt obligations in the normal course of business
Quick ratio excludes inventory from the ratio since inventory is most difficult item to convert to cash
Answer:
The correct answer is letter "D": All of the answers are correct regarding a petty cash fund.
Explanation:
Petty cash funds are sums of money that are useful for businesses to take care of small payments. These payments are too low to allow a check to be written for payment. In some businesses, each department maintains its own small cash box for expenses such as office supplies per unit.
For accounting purposes, transactions involving petty cash are documented only when the petty cash was totally spent and a new fund is to be created and recorded with a voucher.
C selling a share in cooperative
