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tiny-mole [99]
3 years ago
15

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. T

he proceeds from the bonds are $14,703,109.
Using effective-interest amortization, how much interest expense will be recognized in 2012?
a. $585,000b. $1,170,000c. $1,176,374d. $1,176,249
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

Interest Expense for 2017 is $1,176,373

Explanation:

Interese Expense to be recognized in 2017 is $1,176,373

Interest Expense for Jan-Jun = $14,703,108 * 8%/2 = $588,124

Amortization of Discount= ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)

= $588,124 - $585,000 = $3,124

Carry Amount of Bond on June 30 = $14,703,108 + ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)

= $14,703,108 + $588,124 - $585,000 = $14,706,232

Interest Expense for Jun-Dec= [$14,703,108 + ($14,703,108 * 8%/2) - ($15,000,000* 7.8%/2)] *8% /2

= ($14,703,108 + $588,124 - $585,000) *8% /2

=  $14,706,232  *8% /2 = $588,249

Interest Expense for 2017 = $588,124 + $588,249 = $1,176,373

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​Thornton, Inc. has budgeted sales for the months of September and October at $ 302 comma 000 and $ 264 comma 000​, respectively
il63 [147K]

Answer:

A) $279,200

Explanation:

September sale: 302,000, 80% paid on credit which is  = 80% x 302,000 = 241,600, of which 50% are collected in the following month (October), which is equal to 241,600 x 50% = $120,800

October sale = 264,000

20% paid on cash, which is = 20% x 264,000 = 52,800

80% paid on credit and 50% of which is collected in the month of sale (October) = 80% x 50% x 264,000 = $105,600

Total cash collections for October = 120,800 + 52,800 + 105,600 = $279,200

6 0
3 years ago
Name the blue-shaded parts as a mixed number.<br> A) 2 2/3<br> B) 3 2/3<br> C) 2 2/9<br> D) 3 2/9
tamaranim1 [39]

Answer:

[A] 2 2/3

Explanation:

Base on the given data you can see that 2 of the circle are fully shaded meaning

2 whole

There is one that is shade 2/3 {2 out of 3 are shaded}
Hence, put together

2 2/3

Therefore, the answer is [A] 2 2/3

<u><em>~lenvy~</em></u>

3 0
2 years ago
A building's owner pays a property manager in 81/2% commission based on the units annualized rent for each new tenant last year
Vera_Pavlovna [14]

Commission paid by the building owner to the property Manager for the new tenant is $4575.

<h3>What is a Commission?</h3>

A brokerage receives compensation for delivering a customer who signs a lease by way of a rental commission. Frequently, rental commissions are stated as months of rent or as a percentage of the annual rent.

The calculation for the Commission of Property Manager:

Commission = Total annualised rent x percentage of Commission

                     = (795 x 12 x 3 + 1200 x 12 + 900 x 12) x 8.5%

                     = 53820 x 8.5% = $4,575

Commission for the property manager = $4,575.  

   

Thus,  a rental commission, a brokerage is paid for bringing a consumer who signs a lease. The commission for the property manager is $4,575.

Learn more about Commission here:

brainly.com/question/20987196

#SPJ1

5 0
2 years ago
Contingent liabilities should be recorded in the accounts when: it is possible the future event will occur the amount of the lia
slava [35]
Either of the above would be correct
3 0
3 years ago
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million attributable to a temporary
Effectus [21]

Answer:

A. Payne Industries

(In Million)

Dr Income tax expense $54

Cr To Deferred Tax Assets $9

Cr To Income Tax Payable $45

No Journal Entry Required

b. Dr Income tax expense Dr $54

Cr To Deferred Tax Assets $9

Cr To Income Tax Payable $45

Dr Income tax expense $12

Cr To Valuation Allowance - Deferred Tax Assets $12

Explanation:

a. Preparation of the journal entry(s) to record Payne’s income taxes for 2021,

Payne Industries

(In Million)

Dr Income tax expense $54

($45+$9)

Cr To Deferred Tax Assets $9

[($100-$64)*25%]

Cr To Income Tax Payable $45

($180*25%)

(To record income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )

No Journal Entry Required

b. Preparation of the journal entry(s) to record one-fourth of the deferred tax asset ultimately will be realized

Journal Entries

(In Million)

Dr Income tax expense Dr $54

($45+$9)

Cr To Deferred Tax Assets $9

[($100-$64)*25%]

Cr To Income Tax Payable $45

($180*25%)

(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )

Dr Income tax expense $12

Cr To Valuation Allowance - Deferred Tax Assets $12

[($64*75%)*25%]

(Being to record valuation allowance for deferred tax assets)

3 0
3 years ago
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