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posledela
3 years ago
14

Sanders Corporation issued $ 470,000 of 9​%, ​10-year bonds payable at a price of 91. The market interest rate at the date of is

suance was 10​%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the​ effective-interest amortization method is :
A. Date Accounts and Explanation Debit Credit Interest Expense 23,735 Discount on Bonds Payable 235 Cash 23,500
B. Date Accounts and Explanation Debit Credit Interest Expense 27,307 Discount on Bonds Payable 3,807 Cash 23,500
C. Date Accounts and Explanation Debit Credit Interest Expense 24,957 Discount on Bonds Payable 3,807 Cash 21,150
D. Date Accounts and Explanation Debit Credit Interest Expense 21,385 Discount on Bonds Payable 235 Cash 21,150
Business
1 answer:
enyata [817]3 years ago
3 0

Answer:

D. Date Accounts and Explanation Debit Credit Interest Expense 21,385 Discount on Bonds Payable 235 Cash 21,150

Explanation:

The journal entry is shown below:

Interest expense $21,385

     To Discount on bond payable $235

     To Cash $21,150

(Being the interest expense is recorded)

The computation is given below:

The interest expense is

=  $470,000 ÷ 100 × 91 × 10% ÷ 12 months × 6 months  

= $21,385

The cash is

= $470,000 × 9% ÷ 12 months × 6 months  

= $21,150

And, the remaining balance is credited to discount on note payable

We simply debited the interest expense as it increased the expenses and credited the cash as it reduced the assets plus the remaining amount is credited to discount on bond payable

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What is this form used for? to withdraw money from a savings account to deposit money in a savings account to order checks open
snow_lady [41]

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Explanation:

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3 years ago
Your coin collection contains 59 1952 silver dollars. required: if your grandparents purchased them for their face value when th
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Let r and s be relations with no indices, and assume that the relations are not sorted. Assuming infinite memory, what is the lo
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3 years ago
Rockville, Inc. which uses a job costing system, began business on January 1, 20X3 and applies to manufacture overhead on the ba
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Answer:

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Rockville's COG Manufactured  Total Cost of Goods Manufactured = $ 815,000

Net Income  $ 793,800

Explanation:

<u>Rockville, Inc. </u>

Budgeted Direct Labor $200,000

Manufacturing Overhead  $250,000,

Job number DM DL

#1 $145,000 $35,000

#2 320,000 65,000

#3 55,000 80,000

Rockville's ending WIP inventory= Job#3 = Direct Materials + Direct Labor = 55,000 +  80,000=  $ 135,000

Rockville's COG Manufactured

= Job #1 + Job #2= Direct Materials + Direct Labor = $145,000 + $35,000 + 320,000 + 65,000= 565,000

Applied Overhead $250,000

Total Cost of Goods Manufactured = $ 815,000

Less Ending Inventory $ 135,000

Cost of Goods Sold= $ 500,000

Actual Manufacturing Overhead = $ 233,000

Applied Overhead $250,000

Less Over applied Overhead $ 17,000

Adjusted Cost of Goods Sold $ 483,000

Rockville's income statement.

Sales $ 798,000*1.6=   $ 1276,800

<u>Less COGS $ 483,000</u>

<u>Net Income  $ 793,800</u>

7 0
3 years ago
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