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
Oksi-84 [34.3K]
3 years ago
11

The Gorman Group issued $920,000 of 9% bonds on June 30, 2021, for $1,011,047. The bonds were dated on June 30 and mature on Jun

e 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate).

Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $1,011,047

    To bonds payable $920,000

     To Premium issue of bonds $91,047

(Being Issue of bonds at premium is recorded)

2. The completion of the table is shown below:-

Dec 31, 2018        Amount          Interest rate       Total

Interest expense  $1,011,047        4%                 $40,441.8

                                                (8% × 6 ÷ 12)

Cash                       $920,000       4.5%               $41,400

                                                (9% × 6 ÷ 12)

Amortization of premium                                       $958.2

Interest expense Dr, $40,441.8

Premium issue of bonds Dr, $9,582

     To Cash $41,400

(Being interest expense and amortization of premium is recorded)

3. Dec 31, 2018        Amount          Interest rate       Total

Interest expense   $1,010,088            4%             $40,403.5

                ( $1,011,047 - $958.2)      (8% × 6 ÷ 12)

Cash                       $920,000       4.5%               $41,400

                                               (9% × 6 ÷ 12)

Amortization of premium                                       $996.5

Interest expense Dr, $40,403.5

Premium issue of bonds Dr, $995.5

     To Cash $41,400

(Being interest expense and amortization of premium is recorded)

You might be interested in
Your local coffee shop has announced new hours of operation. Previously: 7 am – 4 pm Monday thru Friday and 7am to Noon Saturday
Jet001 [13]
Your answer might be C , the pay has to be increased cause the hours increased,cant be b because the weekly payrool cant be same,ya feel?
5 0
3 years ago
Lake stevens marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30.
Leni [432]

$500,000

Break even =(fixed costs - contribution margin)

Contribution margin is Price of item- variable costs ($1- 30 cents/per item=.7)

$350,000/.7 = $500,000

4 0
3 years ago
Describe a scenario that forced you to wrestle with your values?
Trava [24]

Answer:

To use brainly or to not use brainly. I dont like cheating but sometimes I realy need help.

Explanation:

7 0
3 years ago
Gabe industries sells two products, basic models and deluxe models. Basic models sell for $44 per unit with variable costs of $2
Dima020 [189]

Answer:

See below

Explanation:

Basic models Deluxe models

Sales price $44 $54

Variable costs $25 $25

Contribution margin $9 $29

×

Sales mix 1 3

Total contribution margin $9 $87

Contribution margin per unit = $9 + $87 = $96

Weighted contribution margin= Total contribution margin / Units

= $96 / $4

= $24

Break even point = Total fixed costs / Weighted contribution margin

Break even point = $1,441 / $24

Break even point = 60 units

•Basic units = 60 × 63.33% = 38 units of basic

•Deluxe units = 60 × 43.33% = 26 units of Deluxe units

6 0
2 years ago
Select all that apply. Select all the items that describe the benefits that consumers may receive from more sellers in the marke
Orlov [11]
The following apply:
1. Better quality of goods and services.
2. Improved customers services.
3. More variety of goods and services.
There are some benefits that customers derived from competition. Parts of the benefits are listed above. Competition encourages businesses to improve the quality of their products and services and place reasonable prices on their products. 
3 0
3 years ago
Other questions:
  • If the number of employed is 220,000, the labor force is 250,000, the number of discouraged workers is 15,000, and the number of
    13·1 answer
  • When is a liability considered "current"?
    11·1 answer
  • By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consump
    10·1 answer
  • Sarah is a 50 percent partner in the SF Partnership and has an outside basis of $56,000 at the end of the year prior to any dist
    9·2 answers
  • The duty of all businesses to provide a significant net positive contribution to the general good of customers, employees, the c
    8·1 answer
  • Innovation takes dedicated effort and resources, and organizations that are successful at it tend to be set up in ways that natu
    14·1 answer
  • Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo
    11·1 answer
  • Sedentary muscles should be braised to make them become tender.
    13·1 answer
  • Why is there is a difference between the roles of a manager, a monitor and an entrepreneur? Support your answer with an example.
    14·1 answer
  • Tom cruise wore bausch and lomb's ray-ban sunglasses in the movie risky business, and sales skyrocketed. the appearance of the s
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!