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
Alexxandr [17]
3 years ago
15

Damon Corporation issued $400,000 of 6% bonds on May 1, 2020 using straight-line interest. The bonds were dated January 1, 2020,

and mature January 1, 2023, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest.
Prepare Damon's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.
Business
1 answer:
Marat540 [252]3 years ago
3 0

Answer:

May 1

Dr Cash408,000

Cr Bonds Payable 400,000

Cr Interest Expense 8,000

July 1

Dr Interest Expense 12,000

Cr Cash 12,000

Dec 31

Dr Interest Expense 12,000

Cr Interest Payable12,000

Explanation:

May 1,

Dr Cash408,000

Cr Bonds Payable 400,000

Cr Interest Expense 8,000(Accrued Interest = 400,000 x 6% x 4/12)

July 1

Dr Interest Expense 12,000

Cr Cash 12,000(Bond interest expense = 400,000 x 6% x 6/12)

Dec 31

Dr Interest Expense 12,000

Cr Interest Payable12,000

You might be interested in
On January 1, Year 1, Beatie Co. borrowed $200,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal
harkovskaia [24]

Answer:

Amortization Schedule is attached with answer please find it.

Explanation:

Loan Payment includes the the principal and interest payment for the period. First we calculate the interest portion in the payment and then residual amount after deducting the interest portion is considered as the principal payment.

In this question the loan payment of $47,479 includes the Interest payment and principal payment as well, which is shown separately in the schedule.

4 0
3 years ago
What is global trade?
andreyandreev [35.5K]

Global trade is trade that happens across international borders. Rather than one country buying and selling things, goods and services are traded between countries across the globe.

8 0
3 years ago
When we compare the factors of production in wealthy and poor nations, we find: A. poor nations have plenty of land and knowledg
mafiozo [28]

Answer:

C.wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas

Explanation:

Factors of production includes:

1. Land - land includes all natural resources

2. Capital - includes machinery, tools used in the production of goods and services

3. Labour - includes all human effort expended in the production of goods and services

4. Entrepreneurship - coordinates all factors of production.

Poor countries have high levels of illiteracy, so they don't have an abundance of knowledge. Poor countries are usually overpopulated, so they usually have high Quanitity of labour.

On the other hand, rich countries have high literacy levels, so, they have an abundance of knowledge.

I hope my answer helps you

6 0
3 years ago
If a project has a net present value equal to zero, then: I. the present value of the cash inflows exceeds the initial cost of t
Over [174]

Answer:

ii, iii, iv

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

If the present value of the cash inflows exceeds the initial cost of the project,  NPV is positive

If the present value of the cash inflows is less than the initial cost of the project,  NPV is negative

7 0
4 years ago
A customer paying $100 for a service with a credit card would be a debit to which account?
Fed [463]

Answer:

Accounts receivable

Explanation:

The $100 is a debit from the credit card of the customer and would be debited to accounts receivable.

Account receivable is basically the money owed to a seller by the buyer and they are created by the company when the credit purchase is made.

The company will receive their $100 owed to them from accounts receivable because it shows on the balance sheet the amount owed the company and can be retrieved on short term basis.

5 0
3 years ago
Read 2 more answers
Other questions:
  • True or false, mind mapping serves as a powerful tool to assist in decision making
    10·2 answers
  • Which of the following financing options has the least (future) obligation from the student?
    7·2 answers
  • Which sentences in the passage demonstrate the fulfillment of the legal responsibilities of a financial exchange?
    5·1 answer
  • Your trip to was great, but it unfortunately ran a bit over budget. However, you just received an offer in the mail to transfer
    15·1 answer
  • Mars, Inc., makers of Snickers candy bars launched its You're Not You When You're Hungry promotion campaign. The company's telev
    5·1 answer
  • Lisa is a tax accountant. She needs to enter many numbers. To enter these numbers, she should use the _____.
    11·2 answers
  • PLEASE HURY
    11·1 answer
  • Southeast Airline had retained earnings of $1.5 million, sales of $5 million and net income of $0.5 million this year. It also p
    7·1 answer
  • If common stock is issued in exchange for land, it would be reported:___________
    11·1 answer
  • Tony is giving a presentation about needed repairs to the exterior of the small condo building where he lives. He is speaking to
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!