<span>1. journalize the entry to record the amount of cash proceeds from the issuance of the bonds on july 1, 2016.
Cash 42,309,236 Discount on bonds payable 3,690,764 Bonds payable 46,000,000
</span><span>2. journalize the entries to record the following: a. the first semiannual interest payment on december 31, 2016, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
Interest Expense 2,327,007.98 Discount on Bonds Payable 92,269.10 Cash 2,234,738.88
b. the interest payment on june 30, 2017, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
</span>nterest Expense 2,327,007.98 Discount on Bonds Payable 92,269.10 <span> Cash 2,234,738.88 </span><span> 3. </span><span>determine the total interest expense for 2016. </span>42,309,236 x 11% = 4,654,015.96 annual interest expense 4,654,015.96 x 6/12 = 2,327,007.98 semi annual expense
Chester company has developed a strategy of cost cutting to survive best among its competitors. It has cut its routine expenses and has lowered its cost of goods manufactured which can lead to profit maximization. The company has lowered its selling price and customers are more attracted to it because of its cheap price among all other companies supplying same products
a. during the the construction period of a self-constructed asset
Explanation:
"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."
Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,
