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scoundrel [369]
3 years ago
14

On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J

une 30 and December 31. The premium is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2.
Business
1 answer:
mel-nik [20]3 years ago
5 0

Answer:

The cash received from bond issuance is journalized as follows:

Dr Cash                                $285,600

Cr  Bonds payable                                  $280,000

Cr Premium on Bonds payable                   $5,600

The June 30 and 31 December Year 1 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

The June 30 and 31 December Year 2 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                             $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                            $8400

Explanation:

The amount realized from the bond is calculated thus:

$280,000*102%=$285,600

Premium on  bond=Bonds proceeds-par value

                                =$285,600-$280,000

                                =$5,600

Semi-annual amortization of bond premium=$5,600/5*6/12

                                                                         =$560

Semi-annual interest payment=$280,000*6%*6/12

                                                 =$8,400

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Answer:

b. prepare and rehearse

Explanation:

In order to be tactful and professional when personally delivering bad news within organizations, you should prepare and rehearse. Before delivering bad news you need to make sure you have gathered all the information from both sides of the story in order to deliver the news tactfully and professionally. Once you have all the information, rehearsing your delivery will allow you to perfect it and implement a more empathetic approach. Taking a partner is also a good choice, as well as waiting for the right moment.

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3 years ago
Prior to recording adjusting entries, the Office Supplies account had a $363 debit balance. A physical count of the supplies sho
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Answer:

Explanation:

The adjusting entry is shown below:

Office supplies expense A/c Dr $257

      To Office supplies                                  $257

(Being adjusted entry recorded in respect of office supplies)

Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:

= Office supplies debit balance - unused office supplies

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Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.

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Assume that Luxland and Leanderland specialize and trade in a way that is advantageous for bothof them. Explain what will happen
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Question Completion:

Production outputs

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Chips                10                4

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a) Data and Calculations:

Specialization Output:

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Chips                20                0

Pretzels              0                16

Total output     20                16

b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels).  When they specialize, Leanderland's output increases to 16 units from 12.  This results in total output of 36 units instead of 32 for both economies.

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