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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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Zepler [3.9K]

Answer:

The correct answer is D. indirect cost.

Explanation:

That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.

In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.

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3 years ago
According to a recent survey, insurance was cited as the biggest problem for small businesses. What is cited as the second most
Murljashka [212]
A health care costs sorry if i am wrong
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3 years ago
When is the bargaining power of the buyer greater than that of the supplier?.
malfutka [58]

Answer:

Switching costs

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5 0
2 years ago
What are the unique financial reporting implications of the partnership entity in comparison with the proprietorship and corpora
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The financial reporting of the Partnership firm differs from the  proprietorship and corporate entities as the closing process of partnership involves creation of the realization account, whereas the another entity not required this.

<h3>What is financial reporting?</h3>

Standard techniques for giving stakeholders an accurate portrayal of a company's finances, including revenues, profits, expenses, cash flow, capital, and official records that provide in-depth insights into financial information, are referred to as financial reporting.

The payment of taxes, fines, and interests has new financial reporting consequences for partnership firms that are distinct from any other sort of business company.

Taxes paid to partners or owners, on the other hand, are accounted for in a transaction with the owners.

Furthermore, the financial reporting implications for a partnership firm differ from those for a sole proprietorship or a corporation, as the partnership business is distinct from the two stated businesses.

The closing process of partnership differs from the another businesses because the closing process of partnership involves the preparation of realization account.

Therefore, the partnership form of business enterprise is differed from the other business.

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5 0
2 years ago
Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%,
Luda [366]

Answer:

The answer is a. $2,967.92

Explanation:

Calculation of prent value

Present value = p* (1+i)^-10

Present value = $4,500 * (1+0.0425)^-10= <u>$2,967.92</u>

4 0
3 years ago
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