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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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By 2015, the foreclosure rate was down by 20%. The metropolitan statistical areas showing the highest percentage of improvement
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The correct option is C) Washington, D.C.

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The process of foreclosure starts when a borrower is unable to make their mortgage payments. When a mortgage is foreclosed, the lender normally seizes the property and makes an effort to sell it. This occurs when real estate is utilised as security for mortgage loans, making your house a form of security.

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The complete question is -

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“It’s the day that has replayed in your memory a thousand times over. The last kiss. The last phone call. The last time hearing those precious words, ‘I love you,’” the president said.

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