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tino4ka555 [31]
3 years ago
12

On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c

lassified as held-to-maturity, mature on June 30, Year 14, and pay interest semiannually on June 30 and December 31. Using the interest method, Pell recorded bond discount amortization of $1,800 for the 6 months ended December 31, Year 4. From this long-term investment, Pell should report Year 4 revenue of
Business
1 answer:
gayaneshka [121]3 years ago
6 0

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

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Do entities report​ revenues, expenses,​ gains, and losses in net income or other comprehensive​ income? Explain.
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Answer:

Revenue Expenses in net income

Gain / losses in Other comprehensive income

Explanation:

Revenue and Expenses of an entity is reported in the net income section of income statement. the second section of income statement deals with unrealized gains / losses and any gain or losses from discontinuing operations as well. Net income also added to the other comprehensive income to calculate total net income or total comprehensive income.

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3 years ago
Market competition is described as a:
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Answer:

Survival of the fittest

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b. Unearned Rent

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Explanation: just took the test. Quizlet.

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3 years ago
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What do you think would be a fair price

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