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
anygoal [31]
3 years ago
12

On January 1, 2016, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1, 2016, for $1,423,060. The bonds

pay interest semiannually on June 30 and December 31 and are due December 31, 2020. Hackman uses the straight-line amortization method. Required: Record the issuance of the bonds and the first two interest payments.
Business
1 answer:
krok68 [10]3 years ago
4 0

Answer:

(a) Bond issuance:

Debit Cash                                                           $1,423,060

Credit Bonds payable                                         $1,400,000

Credit Premium on bond payable                          $23,060

<em>(To record bond issuance)</em>

(b) June 20 interest payment

Debit Interest expense (balancing figure)              $81,694

Debit Premium on bond payable                             $2,306

Credit Cash                                                             $84,000

<em>(To record first interest payment - June 30)</em>

(c) December 31  interest payment

Debit Interest expense (balancing figure)             $81,694

Debit Premium on bond payable                           $2,306

Credit Cash                                                            $84,000

<em>(To record first interest payment - December 31 )</em>

Explanation:

A bond is a long-term promissory note issued by a company in order to borrow from investors to fund its business operations.

Calculation of the interest expense:

Premium on bonds payable (balancing figure) = $23,060

Number of periods = 5 years x 2 = 10 periods

Amortization of premium on bond payable = $23,060 / 10 periods = $2,306

Calculation of the cash proceed:

Cash = Face value of bond x contractual interest x Time period

Cash = $1,400,000 x 12% x 6 / 12 = $84,000 (see the journals above)

You might be interested in
5 elements of Design for Delight?​
Nikitich [7]
Answer: The 5 elements of Design for Delight are going to start out with Delighting people.
4 0
3 years ago
Which of the following is NOT a necessary condition for oligopoly? differentiated products barriers to entry strategic dependenc
stepladder [879]

Answer:

differentiated products.

Explanation:

An oligopoly occurs when a few large firms dominate a market and they aim to maximise profit. The action of one firm has significant effect on the market, so the firm's are interdependent.

There are high barriers to entry including use of government liscences, patents, economies of scale, and actions taken by firms to discourage entry into the market.

However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.

8 0
3 years ago
A budget based on several different levels of activity, often including both a best-case and worst-case scenario, is called a:
Kaylis [27]

Answer:

Flexible budget.

Explanation:

7 0
3 years ago
Read 2 more answers
Which of these are reasons for the increase in ethical violations among business leaders in the 21st century?
pychu [463]

Answer: The following are reasons for increase in ethical violations among business leaders in the 21 century:

1. The 24/7 news cycle place a more scrutiny on unethical behaviour.

2. Globalization allows business to operate in region where ethical risk are greater.

3. Digital communication are more susceptible to hackers and whistle blowers.

Explanation:

7 0
3 years ago
The _________ gives the owner of a variable annuity the ability to withdraw a maximum percentage of the annuity value until the
snow_tiger [21]

Answer:

D. Guaranteed minimum withdrawal benefit

Explanation:

In the case of the guaranteed minimum withdrawal benefit, the benefit is available for fixed annuity and for a variable annuity.

When the market is down, the policyholder can withdraw the maximum percentage of the annuity value unless the amount of initial investment recouped.  

Withdrawal amount should be between of five percent to ten percent of the initial investment held.

6 0
3 years ago
Other questions:
  • If your lifestyle budget is $50,000 a year, selecting a career earning $75,000 will most likely allow you to meet your lifestyle
    14·2 answers
  • The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding a
    14·1 answer
  • El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will recei
    7·1 answer
  • Wholesale Company began the year with merchandise inventory of $ 8 comma 000. During the​ year, Upper S purchased $ 96 comma 000
    12·2 answers
  • Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4
    15·1 answer
  • Knowledge Check 03 During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by
    12·1 answer
  • Yao decides to place a $2,000 deposit at the end of each year into a bond fund that earns 6% annually. Find the amount of the in
    15·1 answer
  • The owner of a condominium hired a cleaning and junk removal service to clean his condominium after he moved. The parties agreed
    6·1 answer
  • In year 1000 a man named acholos nemroc celebrated him birthday, turning 100 years old, how old was he in -100?
    5·1 answer
  • Anthony corporation reported the following amounts for the year: net sales$296,000 cost of goods sold 138,000 average inventory
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!