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egoroff_w [7]
3 years ago
13

When the market rate is 10%, a company issues $60,000 of 12%, 10-year bonds dated January 1, 2017, that mature on December 31, 2

026, and pay interest semiannually. When the bonds mature, the issuer records its payment of principal with a (debit/credit) to Cash in the amount of $ .
Business
1 answer:
Shkiper50 [21]3 years ago
8 0

Answer:

Credit, $60,000

Explanation:

Given,

Market rate = 10%

Face value $60,000 = Principal value.

When the bonds mature, the issuer records its payment of principal with credit to cash in the amount of principal value that is $60,000 because the bondholder will pay the principal with interest.

Therefore,

Bondholder will pay the $60,000 issued amount as principal because there is an additional interest amount needs to be paid.

It is credit because it is matured on the date of cash payment.

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Assume that three weeks before you and Lester are supposed to close your deal for the sale a twenty-acre tract of land, Lester c
Margaret [11]

Answer:

The answer is C

Explanation:

8 0
3 years ago
A.Red Company has excess cash to invest and pays Ş 50.000 to buy Ş 50.0000 face value, % 5 five-year B Company’s bonds July 1, 2
likoan [24]

Answer:

Dr Bond investment   $50,000

Cr  cash                                          $50,000

Dr cash                               $1,250

Cr interest revenue                            $1,250

Dr cash                          $50,000

cr bond investment                       $50,000

Explanation:

On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount

On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.

Upon receipt of face value at redemption,the journal entry would be opposite of the initial one

4 0
3 years ago
The Bakery produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.50 pe
Ber [7]

Answer:

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

Explanation:

Flour needs to produces organic bread:

In July = 1,500 x 1/2 = 750 pounds

In August = 1,880 x 1/2 = 940 pounds

In September = 1,680 x 1/2 = 840 pounds  

In October = 1,560 x 1/2 = 780 pounds

Flour needs on hand at the end of:

July = 940 x 20% = 188 pounds

August = 840 x 20% = 168 pounds

September = 780 x 20% = 156 pounds

Total flour needs:

In July = 750 + 188 = 938 pounds

In August = 940 + 168 = 1,108 pounds

In September = 840 + 156 = 996 pounds  

In the third quarter = 3,042 pounds

The bakery pays $2.50 per pound of the organic flour used in its loaves.

In July = 938 pounds x $2.50 = $2,345

In August = 1,108 pounds $2.50 = $2,770

In September = 996 pounds  $2.50 = $2,490

In the third quarter = $7,605

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

7 0
3 years ago
Chik’s Chickens has accounts receivable of $6,333. Sales for the year were $9,800. What is its average collection period?
MAXImum [283]

Answer:

The answer is 235 days

Explanation:

Average collection period can also be called Days' outstanding period. And it is the number of days it takes a business to collect its money or receivables from the goods or services sold on credit.

Days' reveivables period or Average collection period = 365 days / reveivables turnover.

Receivables turnover = Sales/ average receivable

$9,800/$6,333

= 1.55

Average collection period=

365 days/1.55

=235 days

6 0
3 years ago
Employees earn vacation pay at the rate of one day per month. During the month of July, 28 employees qualify for one vacation da
Stells [14]

Answer:

$2884

Explanation:

Given that:

  • 28 employees qualify for one vacation day each
  • Average daily wage is $103 per day

So he amount of vacation benefit expense to be recorded for the month of July:

= number of employees * average daily wage

= 28*$103  

= $2884

7 0
3 years ago
Read 2 more answers
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