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
sashaice [31]
3 years ago
7

On January 2, 20X1, Schneider Company issues $100,000 of 6% bonds. The market interest rate is 7%. Interest of $3,000 is payable

semi-annually on June 30 and December 31. The bonds mature in 5 years. The bond issues for $95,842. On June 30, the company should recognize a discount amortization of ___________.
Business
1 answer:
krek1111 [17]3 years ago
7 0

Answer:

The answer to this question is $354.47

Explanation:

Firstly, interest payable based on face value of the bond and coupon interest rate is 6%*$100000*6/12,which is $3000 semi annually as given in the question.

However,interest based on market value and market interest rate is $95,842*7%*6/12=$3354.47

In other words, the bond discount amortization is the difference between the two interests as calculated above.

Difference=$3354.47-$3000

                 =$354.47

The necessary entries to pass  in the books of accounts are stated thus:

DR Interest expense        $3354.47

CR Interest payable                            $3000

CR Bond discount                               $354.47

You might be interested in
What is the difference between gross & net pay
stich3 [128]
Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
6 0
2 years ago
A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income  = $400,000

7 0
3 years ago
_____ is the element in the promotional mix of a marketing plan that evaluates the public’s attitudes, identifies issues that ma
kotykmax [81]

Answer: Public Relations

Explanation: The elements of a promotional marketing mix are the resources an organisation engages in its marketing promotion. They are:

Advertising, public relations, sales promotion, direct marketing and personal selling.

The above listed elements have there unique effect on the sales if an organisation.

Advertising is used to create an awareness of the product to the consumer using all forms of advertising such as radio jingle television advert, billboards etc.

Public relations is used to find out the effect of the products in the market and also to get feedbacks from consumer which will enable mgt to plan on ways to correct any issue observed.

Sales promotions are ways of giving to the consumers fee products as rewards for loyalty

Direct marketing is the use of marketing officers that will speak to consumers personally and try convincing them to try the products

Personal selling is the act of selling the products one on one to customers

3 0
4 years ago
Alana lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produc
Elis [28]

Answer:

Free-market

Explanation:

As Alana can import without paying quotas to the government the economy i nthis country is of free-market. The government doesn't try to restrict their citizens from the goods and services offered fro manother countries.

Same is true for the sale of national product to abroa,there is no qupta, tariff or additional cost involved in trade thant those generated from the transactions. It is tax-free to import and export

5 0
4 years ago
Select all that apply.
ahrayia [7]

Answer:

The answer is A.

Explanation:

B doesnt make much sense and C is just plain stupid

8 0
4 years ago
Other questions:
  • Bank overdrafts, if material, should bea. reported as a current liability.b. reported as a deduction from the current asset sect
    5·1 answer
  • The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account fo
    8·1 answer
  • Cyclical unemployment is BEST described as unemployment arising from A) the elimination of jobs as a result of technological cha
    11·1 answer
  • Suppose GDP in this country is $1,330 million. Enter the amount for government purchases. National Income Account Value (Million
    8·1 answer
  • Under which of the following conditions is job dissatisfaction not likely to translate into turnover?a. Employees have high educ
    13·1 answer
  • Following errors occurred in posting from a two-column journal:
    8·1 answer
  • How would you feel if someone was talking about you?
    11·1 answer
  • A free enterprise system refers to: a. Economic assets that are privately owned and exchanged in an open market. b. Property own
    9·1 answer
  • Sales Mix and Break-Even Analysis Einhorn Company has fixed costs of $105,000. The unit selling price, variable cost per unit, a
    11·1 answer
  • Far Side Corporation is expected to pay the
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!