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malfutka [58]
3 years ago
5

Lock Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and January 1. The effect

ive interest rate for these bonds was 8.5%. The market value on December 31, 20x1 was $104,400 and all bonds were sold for 103 on January 2, 20x2. Lock is a calendar-year corporation and use the effective interest method for amortization of premium or discount.
Required:
Prepare journal entries on January 1, 20x1, July 1, 20x1, December 31, 20x1 and January 1, 20x2 assuming the bond investment is classified as available-for-sale security.Assuming the bond investment is classified as available for sale security.
Business
1 answer:
Arte-miy333 [17]3 years ago
8 0

Answer:

Explanation:

see attached file.

Download docx
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Typically, the firms' lowest cost source of financing is ____________ as its cost is tax deductible and it also tends to offer t
Finger [1]

Answer:

Debt

Explanation:

Debt is the lowest cost source of financing because the <em>interest</em> return given to holders of debt has a <em>tax shield</em> (tax deductible) that is provided by the Section 11j  of the Income tax Act.

The other sources of finance give a return in form of <em>dividends</em>. Dividends are are not tax deductible hence they attract a huge cost.

6 0
3 years ago
3 uses of money supply
zalisa [80]

Answer:

Money serves as a medium of exchange, as a store of value, and as a unit of account.

7 0
3 years ago
Campbells is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. I
Oxana [17]

Answer: Introduction phase.

Explanation:

Campbell's company is going through the introduction phase of it's development cycle. In the introduction phase, a business; builds it's customer base, makes very little or no profit, observes slow growth rate and the running cost is usually high, but the business tends to stabilize as it enters the growth phase.

6 0
4 years ago
The audit Mr. Chu is working on for a technology company is regulated. What does this mean?
Aliun [14]

It means that the technology company will use the audit results to analyze risks. Thus option A is correct.

<h3>What is Audit ?</h3>

Audit refers to the checking of financial records of the company in order to ensure that the records are systematic and accurate. It is very helpful for the outsiders such as creditors, shareholders, government agencies etc as it provides the accurate information about transactions.

Mr. Chu will analyse the financial statements of the technology company an conclude about the risk involved in the company. Thus it helps in analyzing the risk. Therefore, option A is correct.

Learn more about auditing here:

brainly.com/question/14652228

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7 0
2 years ago
Utility refers to a person's derived ________ from consuming a good.
WARRIOR [948]

Answer:

B

Explanation:

Utility means useful, therefore the answer would be answer B. usefulness.

3 0
3 years ago
Read 2 more answers
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