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
Svetach [21]
3 years ago
14

On March 1, 2021, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2021, for $99 million (plus accru

ed interest). The bonds mature on December 31, 2040, and pay interest semiannually on June 30 and December 31. Brown-Ferring’s fiscal period is the calendar year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds by Brown-Ferring.
Business
1 answer:
iris [78.8K]3 years ago
7 0

Answer and Explanation:

1. The amount of the accrued interest rate is

= Principal × rate of interest × time period

= $100,000,000 × 12% × 2 months ÷ 12 months

= $2,000,000

The 2 months are considered from December 31 to March 31

2. And, the journal entry is

Cash Dr $101,000,000 ($99,000,000 + $2,000,000)

Discount on bond payable $1,000,000

       To Bond payable $100,000,000

        To Interest payable $2,000,000

(being the issuance of the bond is recorded)

Here it debited the cash as it increased the assets and credited the bond payable and interest payable as it also increased the liabilities

You might be interested in
Yes! Assuming Economia's aggregate supply curve is upward sloping, when the aggregate demand curve shifts rightward, this will:
katovenus [111]

When the aggregate demand curve shifts rightward, this will increase Economia's real output and the price level.

<h3>What happens when the aggregate demand shifts rightward?</h3>

The aggregate demand curve is a curve that shows the total quantity of all goods and services demanded by the economy at different price levels. The aggregate demand curve slopes downward.

When  aggregate demand curve shifts to the right, there would be an increase in the real output and the price levels.

To learn more about the demand curve, please check: brainly.com/question/25140811

7 0
1 year ago
Which of the following is not a typical strategic objective or benefit that drives mergers and acquisitions?a. to facilitate a c
ValentinkaMS [17]

Answer:

<h2>The correct answer in this case is option a. or to facilitate a company's shift from a broad differentiation strategy to a focused differentiation strategy. </h2>

Explanation:

Some of the major attributes or objectives behind commercial mergers and acquisitions commonly include expansion of market share or customer base through tapping into new markets(both geographically and new product based) and adopting product or service differentiation by combining business operations,invent more cost effective production processes or methods and gain access to new and improved technological resources and inputs.Hence,one of the important objectives of any commercial merger or acquisition is actually to enhance market share of the company or business organisation through diversified product differentiation and not on any focused differentiation strategy which can potentially cover a relatively wider consumer base.

4 0
3 years ago
Based upon the following data, what is the cost of the land? Land purchase price $196,981 Broker's commission 18,718 Payment for
dexar [7]

Answer:

$219,084

Explanation:

The cost of the land to be recorded includes the purchase price of the land as well as other cost incurred in the process of making the land available for use.

Any amount received as a result of this purchase in form of rebates and discounts will be deducted from the cost.

Hence the cost of the land

= $196,981 + $18,718 + $3,885 - $500

= $219,084

8 0
3 years ago
Qualcomm has developed a groundbreaking new CPU chip. The patent on the chip will last 17 years. You expect that the chip’s prof
umka21 [38]

Answer:

$50.74 million

Explanation:

Interest rate per annum = 8%

Number of years = 17

Number of compounding per annum = 1

Interest rate per period (r) = 8%/1 = 8%

Number of period (n) =17 * 1 = 17

Growth rate (g) = 5%

First payment (P) = 4 ($'million)

PV of the new Chip = p/(r-g) * [1 - [(1+g)/(1+r)]^n]

PV of the new Chip = 4/(8%-5%) * [1 - [(1+5%)/(1+8%)]^17]

PV of the new Chip = 4/0.03 * [1 - [1.05/1.08]^17]

PV of the new Chip = 4/0.03 * [1 - 0.972222^17]

PV of the new Chip = 133.333 * (1 - 0.6194589804)

PV of the new Chip = 133.333 * 0.3805410196

PV of the new Chip = 50.7386757663268

PV of the new Chip = $50.74 million

4 0
3 years ago
For 115 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for servin
vaieri [72.5K]

Answer:

40° Fahrenheit

Explanation:

For an X-bar, the centre line is then average across all components. In this case, the average temperature across all 1150 bottles over 115 days will be 40° Fahrenheit as it is reported.

8 0
2 years ago
Other questions:
  • On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
    9·2 answers
  • The company has a target capital structure of 40% debt and 60% equity. Bonds pay 10% coupon (semi-annual payout), mature in 20 y
    11·1 answer
  • Ahmed promises to sell his boat to mendel, and mendel promises to buy it from ahmed. what type of contract is this?
    13·1 answer
  • A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year. Management predicts this machine
    13·1 answer
  • JVL Enterprises has set a target profit of $126,000. The company sells a single product for $50 per unit. Variable costs are $15
    14·1 answer
  • Assume that there is a 25 percent reserve ratio and that the Federal Reserve buys $4 billion worth of government securities. If
    10·1 answer
  • Relationship between democracy and free market economy?
    14·1 answer
  • Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equi
    14·1 answer
  • For management, a major downside of telecommuting is ________. decreased collaboration reduced morale increased turnover decreas
    9·1 answer
  • _____ involves assembling, packing, labeling, checking and actually moving goods to customers by the best possible means in term
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!