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
Tammy just moved to an area that will soon get cold. She owns some sweaters, but she is not fond of them. She also does not own
Natalka [10]
Her needs must be met before her wants.
3 0
2 years ago
Medical profession is a very sensitive profession.Do U agree?Give 5 reason​
Anna [14]

Answer:

Medical profession is very sensitive and intellectual where human life is at risk. A successful effort of a doctor can save a life. Due to that, a doctor is known as 2nd God. When he attempts a major and long surgery, his endurance, hard work and mental ability spotlight his character.

6 0
2 years ago
Trevor Price bought 10-year bonds issued by Harvest Foods fi ve years ago for $936.05. Th e bonds make semiannual coupon payment
balu736 [363]

Answer: 11.14%

Explanation:

Buying price of bond = $936.05 -PV

Years investment held = n= 5*2

Rate of the Coupon = C = 8.4%

Frequency of payment = m= 2

Annual coupon = $1,000 × (0.084/2) = $42

Realized yield = i

Selling price of bond = PB = $1,048.77 = FV

Enter N= 10, PMT = $42, PV= -$936.05$, FV = 1,048.77

Answer 5.425%

The effective annual yield can be computed as:

EAY = (1+ Quoted m)^m -1

= (1+0.054)^2 - 1

=(1.054)^2- 1

=0.1114= 11.14

5 0
2 years ago
Lego, Inc., issued common stock in Year 1. It issued 10,000 shares of 8%, $100 par value cumulative preferred stock for $110 per
Arisa [49]

Answer: $160,000

Explanation:

Given the following:

Par value = $100

Rate of Dividend = 8% = 0.08

Number of shares = 10,000

Preferred Dividend is calculated thus:

Par value * rate of Dividend × number of preferred stock

$100 × 0.08 × 10,000 = $80,000

Since year 4 Dividend wasn't paid

Total year 5 Dividend equals:

(Year 4 Dividend + year 5 dividend)

$(80,000 + 80,000) = $160,000

5 0
3 years ago
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total
tensa zangetsu [6.8K]

Answer:

<u>Weighted average</u>

COGS: 7176.18

Enbding Invnetory:   4192.82

<u>LIFO</u>

cogs  7,491

ending inventory  3878

<u>FIFO</u>

COGS: 6875

Ending Inventory: 4494

Explanation:

event units price subtotal

Beginning 21 71 1491

Purchase 31 77 2387

Purchase 42 81 3402

Purchase 47 87 4089

available 141  11369

Average price: 11,369 / 141 =    80.6312

COGS: (47 + 42) x 80.6312 = 7176.1773

Enbding Invnetory:

(141 - 47 - 42) x 80.6312 =4192.822695

LIFO

we sale the latest units thus, we compute for sold October 14 and August 22

42 x 81 + 47 x 87 = 7,491

Then, Ending Inventory:

good available - COGS = ending inventory

11,369 - 7,491 = 3878

FIFO we sale the first units so we take from the beginning unti l achieve the 89 units sold (42 + 47)

21 from  beginning at 71

31 from  March at 77

37 from  August at 81

Total COGS: 6875

Ending Inventory

good available - COGS = ending inventory

11,369 - 6875= 4494

4 0
3 years ago
Other questions:
  • Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
    12·1 answer
  • Becker Bikes manufactures tricycles. The company expects to sell 520 units in May and 650 units in June. Beginning and ending fi
    13·1 answer
  • How do you view your account balance online?
    13·1 answer
  • Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Required: Present entries
    15·1 answer
  • Conflict between divergent cultures that come in contact with one another is referred to as which of the​ following?
    12·1 answer
  • A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefinitely. If the current value of the firm’s
    13·1 answer
  • In the middle of this decade, the United States imported about $800 billion more in goods and services than it exported, thereby
    11·1 answer
  • Fill in the missing items in the description of renting an apartment.jose is considering renting an apartment. he will need to m
    5·2 answers
  • AutoZone and O'Reilly are two competitors in the retail automotive parts industry.
    9·1 answer
  • Penny has been using the same brand of shampoo since her mother first bought it for her. She switches to another brand after her
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!