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Dafna1 [17]
3 years ago
11

On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb

er 31 of each year with the first payment due December 31, Year 1. Required Prepare all the general journal entries related to these bonds for Year 1 and Year 2.
Business
1 answer:
Free_Kalibri [48]3 years ago
7 0

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $340,000

     Bonds payable  $340,00

(Being the bond payable is issued for cash)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities  

On Dec 31

Interest expense ($340,000 × 8%) $27,200

       To  Cash  $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

On Dec 31

Interest expense  ($340,000 × 8%) $27,200

    To Cash  $27,200

(Being the interest expense for year 1 is recorded)  

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

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Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each. The order cost is
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If a firm increases its dividend payout rate the: firm will have less cash available for new investment. Unselected firm’s sto
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Answer:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True

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3. Retention ratio will rise at the same rate. False

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1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.

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