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Darina [25.2K]
3 years ago
8

The Crane Company issued $250,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each

July 1 and January 1. The bonds are issued at face value. Prepare Crane’s journal entries for
(a) the January issuance,
(b) the July 1 interest payment, and
(c) the December 31 adjusting entry
Business
1 answer:
amm18123 years ago
4 0

Answer:

a) issuance of bonds:

Cash/bank $250000

                  Bonds $250000

b) Interest payment

Interest expense  $12500 ($25000×6÷12)

                         cash/bank  $12500

c) Adjusting entry

Interest expense $12500 ($25000×6÷12)

                       cash/bank  $12500

Explanation:

Crane has used bonds as a long-term source of finance. The bonds are redeemable after five years which means Crane will have to create a liability and record cash received. The interest paid each year is coupon rate agreed upon issuance of bonds. Interest is calculated on par value of the bond, therefore the interest payment for the year is $25000 ($250000×10%), payable on a half yearly basis. So the interest payment of $25000 will be split between six months and expense recognized.

The journal entries are as follows:-

a) issuance of bonds:

Cash/bank $250000

                  Bonds $250000

b) Interest payment

Interest expense  $12500 ($25000×6÷12)

                         cash/bank  $12500

c) Adjusting entry

Interest expense $12500 ($25000×6÷12)

                       cash/bank  $12500

Adjusting entries are passed at the year end in order to comply with the accruals concept of accounting which requires entities to recognize expenses and revenues in the year they are incurred and earned. So the remaining interest payment (july to dec) relates to the current financial year and hence entry c (above) is recorded to conclude the financial year.

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Answer:

Corporate Social Responsibility.

Explanation:

Corporate social responsibility is a form of foreign self-regulation of a private enterprise aimed at contributing to public objectives of a philanthropic, political or humanitarian nature or by participating in or promoting voluntary or ethically driven activities.

  • Social Operating License can be described as a statutory basis for the legality of the operations and the participation of the organization in the ventures.
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5 0
3 years ago
A company has a process that results in 34000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
serg [7]

Answer:

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

Explanation:

For calculation, following things need to be considered which is shown below:

1. Product A process costing = Pounds × Per pound price

                                            = 34,000 × $8

                                            = $272,000

2. Product A costing after selling = Pounds × sale price per pound

                                                   = 34,000 × $14

                                                   = $476,000

3. Difference of costing :

=  Product A costing after selling - Product A process costing

= $476,000 - $272,000

= $204,000

4. Invested amount = $227,800

5. Actual Difference = Invested amount - costing difference

                                  = $227,800 - $204,000

                                  = $23,800

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

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The difference between money coming into a country from exports and money leaving a country due to imports, plus money flows fro
Sophie [7]

Answer:

Balance of payments (BOP)

Explanation:

The balance of payments is referred to details of the transaction that held between two entities either in the same country or outside the country of a particular time period.

when the transaction was done for another country, there is a deduction of credit from the balance of payment and when transaction was done for the same country then credit is added to the BOP

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Answer:

Jabeli must include = $2,220,000

Explanation:

As per the data given in the question,

Gross Income in 2019 = $2,300,000 - $80,000

= $2,220,000

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In completed contact method of accounting :

Till the contract is completed and accepted, no revenue from the contract is recognized

In this case the purchaser may desire additional work to be done on a long term contract.

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Which guy is on the dollar bill
notsponge [240]

Answer: George Washington

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