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
sergeinik [125]
3 years ago
9

On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the f

irst interest payment, which will be greater the debit to Interest Expense or the credit to Cash?
A.The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.

B.The debit to Interest Expense will be less because the market rate is greater than the stated interest rate.

C.The debit to Interest Expense will be greater because the market rate is less than the stated interest rate.

D.The debit to Interest Expense will be lower because the market rate is less than the stated interest rate.
Business
1 answer:
Rina8888 [55]3 years ago
5 0

Answer:

A. The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.

Explanation:

The effective interest rate is the market rate which is real rate of interest payment after incorporating the compounding effect. When the effective interest rate is greater than the stated the bond will sell at discount. The stated interest rate determines the amount of interest borrower will have to pay. The effective interest rate lead to higher returns than stated interest rate.

You might be interested in
A manufacturer replenishes their packaging materials according to the economic order quantity model. They use 25,000 cases of pa
Sergio [31]

Answer:

$300,000 in total, $6000 per order

Explanation:

25,000/500 = 50

50*12=600

500*12=6000

50*6000=300000

7 0
3 years ago
Read 2 more answers
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost
worty [1.4K]
A is the best choice good luck
4 0
3 years ago
Importance of economic growth​
svlad2 [7]

Answer:

Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor. In turn, increasing employment has been crucial in delivering higher growth.

8 0
2 years ago
Explain the effects of each of the following factors on the market price and quantity of cell phones available in the market: an
Elina [12.6K]

Explain the effects of each of the following factors on the market price and quantity of cell phones available in the market: An increase in consumers’ income = if there is an increase in consumers income, there may be a decrease in the cell phones available for purchase because more people would have money to purchase phones. If more people are willing and able to purchase phones, the market price may increase on the device. Technical improvements that reduce production costs = If production costs of the devices go down, the market price may decrease making the phones more affordable. If phones become more affordable and decrease in price, the quantity sold may rise to reflect the change. A sharp decline in the cost of making fixed-line calls = if the cost of making fixed-line calls decreases, there may not be any change to the market price of phones however their may be an increase in quantity sold.

7 0
3 years ago
Q 6.30: Rollins Technology is determining ending inventory. In the inventory process, Rollins inadvertently miscategorized a $9,
Musya8 [376]

Answer:

Rollins Technology should the $9,600 inventory to the value of their inventory count

Explanation:

FOB destination means the goods become the buyer's when they are at delivery point,which means that until then they are goods of Rollins Technology

Mis-categorizing such goods as FOB shipping point implies that they were assumed to belong to the owners once shipped,all that is required is for the company to restate the value of the goods in transit by adding it back to the its inventory.

5 0
3 years ago
Other questions:
  • Bond issue costs reduce the cash proceeds from the issuance of debt. do not affect the cash proceeds from the issuance of debt.
    14·1 answer
  • The cost of producing a good and getting it to the customers is called the _____ . penalty cost
    6·2 answers
  • What are four things a great résumé shows employers?​
    6·1 answer
  • Preparing adjusting entries LO P1, P3, P4
    6·1 answer
  • Jody’s boss has asked her to inform her coworkers about a change in the company’s policy regarding the dress code. To convey thi
    9·1 answer
  • Jasper makes a $45,000, 90-day, 6.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest
    12·1 answer
  • If revenue is $2000 and operating expenses are $6000, cash flow equals _____.
    15·1 answer
  • Seamus dropped out of school as a 16-year-old and needs to support himself, though he has few skills. He is a part-time employee
    13·1 answer
  • A market-sharing pact negotiated by trading partners that results in voluntary quotas applied to exports in order to protect the
    5·1 answer
  • 1.1  Basic terminologies in agricultural accounting 1.2   Recognition and measurement of agricultural produces 1.3   Reporting a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!