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
jeka94
3 years ago
7

The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated on June 30 and mature on June

30, 2036 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30.
Required:
Complete the below table to record the company's journal entry. (Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).)
Business
1 answer:
Charra [1.4K]3 years ago
8 0

Answer:

cash      967,707 debit

  premium on BP      67,707 credit

  Bnds Payable     900,000 credit

interest expense 58062.42  debit

premium on BP 437.58       debit

       cash                     58500 credit

Explanation:

procceds 967,707

face value 900,000

premium on bonds payable 67,707

<em><u>first interest payment</u></em>

carrying value x market rate

967,707 x 0.06 = 58062.42

then cash outlay

face valeu x bond rate

900,000 x 0.065 = 58,500

the difference will be the amortization

You might be interested in
Mohammed works in a marketing department and is working on his Master's Degree in Marketing. His career goal is to become the ma
Zielflug [23.3K]

Answer:

(D) He should include a timeframe.

Explanation:

A concrete mapping of his goal in a timeframe is all Mohammed needs to make his goal SMART (Specific, Measurable, Achievable, Realistic, and Timely).

Since Mohammed is someone who has a strong educational and professional background regarding his goal, then the goal automatically becomes realistic and achievable. On the other hand, it is also specific, since he clearly states his desired position (he emphasizes the job of marketing department manager instead of simply stating he wants a promotion).

Since his goal is a discrete (not continuous) event, the Measurable characteristic is somewhat irrelevant.

All that is left for him to do is to state by which point in time he wants to achieve that goal (e.g. in five years' time).

6 0
3 years ago
Which of the following does not represent an asset of a company?
mariarad [96]

Answer:

4. Amounts owed to suppliers

Explanation:

We know that

Balance sheet comprises of assets, liabilities and the stockholder equity

The assets could be classified into current asset, fixed asset, and the intangible assets

While the liabilities are also classified into current liabilities and the long term liabilities  

The account receivable, equipment, supplies have come on the asset side of the balance sheet whereas the account payable or amount owed to suppliers have come on the liabilities side of the balance sheet

So, the most appropriate option is 4.

3 0
3 years ago
Accounts payable has a normal beginning balance of $1,000. During the period, there were debit postings of $600 and credit posti
creativ13 [48]

Answer:

c. 900 credit

Explanation:

Account payable is a liability account and as such, the normal balance is in credit.

Opening balance = $1,000

Debit postings represents settlement of account payable.

Debit posting = $600

Credit postings are additions to the liability

Credit postings = $500

Ending balance = - $1,000 + $600 - $500

                          = -$900

Ending balance is a credit of $900. c. 900 credit

7 0
3 years ago
Consider the economies of Kimberlei and Clarkistan, which are identical except that the multiplier in Kimberlei is smaller than
asambeis [7]

Answer:

This means that Kimberlei's GDP is <em><u> less sensitive than </u></em> Clarkistan's GDP to fluctuations in the components of total spending.

Clarkistan's economy is <em><u>more </u></em>sensitive to fluctuations in GDP than Kimberlei's economy. This is because the personal income tax has <em><u>  reduced  </u></em> Kimerlei's multiplier.

Explanation:

As Kimberlei multiplier is lower, the government spending fluctuation will have a lower impact than in Clarkistan as the goverment spending multiplier in the latter is higher thus, a fluctuation increases or decrease the GDP in a higher proportion.

Clarkistan Economy is more sensitive as their government has a higher multiplier when it decreases for recessions it will increase by a higher amount

while Kimberlei as the income tax decreases th effect of the multiplier It is lower. thus the change in GDP is also lower

6 0
3 years ago
Yellow, Inc., sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of
mario62 [17]

Answer:

(C) $600,000

Explanation:

4 0
3 years ago
Other questions:
  • A high rate of _____ is resulted from nonuse of condoms
    10·1 answer
  • Andy, a salesperson for Fashion Seal Uniforms, tells the owner of a retirement home about the importance of caregivers having cl
    7·1 answer
  • 1. Which of the following statements defines "grace period:" 1. The grace period is the day your payment is due. 2. The grace pe
    10·1 answer
  • When the government decreases spending or increases taxes to slow economic expansion, the government is conducting: a contractio
    10·1 answer
  • The unemployment rate may underestimate the true extent of unemployment if:
    9·1 answer
  • Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1
    6·1 answer
  • Economies of scale occur when a firm'sa. marginal costs are constant as output increases. b. long-run average total costs are de
    9·1 answer
  • Making comparisons if the average historical return on a stock market investment is 11%, why doesn’t everyone put their money in
    13·1 answer
  • ________ emphasizes motivating the worker through the characteristics of the job itself. Select one: a. Automation b. Job enrich
    5·2 answers
  • Assuming john's parents do not allow him to use any savings. What is the optimal consumption bundle of pizza and funnel cakes? E
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!