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Oxana [17]
3 years ago
8

Simko Company issued $700,000, 10-year, 4 percent bonds on January 1, 2018. The bonds were issued for $630,000. Interest is paya

ble annually on December 31. Using straight-line amortization, prepare journal entries to record
(a) the bond issuance on January 1, 2018, and
(b) the payment of interest on December 31, 2018.
Business
1 answer:
Liono4ka [1.6K]3 years ago
7 0

Answer:

A) the bond issuance on January 1, 2018

Dr Cash account 630,000

Dr Discount on Bonds Payable account 70,000 (amortized over 10 years, i.e. 7,000 each year)

Cr Bonds Payable account 700,000

B) the payment of interest on December 31, 2018

Dr Interest expense 28,000  (= $700,000 x 4%)

Cr Cash account 28,000

Cr Discount on Bonds Payable account 7,000

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There are a number of specific steps in the appraisal process. What is the final step?
ra1l [238]

Answer:

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Explanation:

The steps which are involved  in the appraisal process are:

1. Stating the purpose.

2. Listing the data needed and its source

3. Gathering, recording and verifying the data.

4. Gathering, recording and verifying the specific data.

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6. Analyzing and interpreting the data.

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8 0
3 years ago
Which of the following would NOT be considered an investment in human capital?
bearhunter [10]

Answer:

B: Purchasing a new computer

Explanation:

Investing your money in a new computer does not teach you new skills so it would not be counted as an investment in human capital. Obtaining a college degree, attending a first-aid class, and paying for cooking lessons enhances your creativity and skills so they are the perfect examples of investments in human capital. Moreover, one of the major characteristics of investing in human capital is that they are intangible so that's another reason why purchasing a new computer cannot be categorized as an investment in human capital.

4 0
3 years ago
The term that best matches the description given.
Leto [7]

Answer:

I think Quantitative data

Explanation:

I'm sry if I'm wrong

4 0
2 years ago
All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as
faust18 [17]

Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.

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Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.

5 0
3 years ago
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mojhsa [17]

The entry for this transaction would be this: 

Land                                1,827,000 

Ordinary shares                       1,827,000 

# 

<span>The market value of the shares on </span>this transaction<span> does not affect the recording of this transaction. If the share has no par value, the stated value should be used. Stated value is a value assigned by the company to its stock for the purpose of accounting and it does not have any relation with the market value of the shares. Since stated value is not given in this problem, we should record the entire amount of the land exchanged in this transaction to the "Ordinary shares" account.</span>

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