All categories

3 years ago

Power Company issued a $ 1,000,000, 5 %, 10-year bond payable at at face value on January 1, 2016. Requirements

Business

1 answer:

Anettt [7]3 years ago

4 0

Answer and Explanation:

The journal entries are shown below:

1. Cash Dr $1,000,000

To Bond payable $1,000,000

(Being the issuance of the bond is recorded)

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

2. Interest Expense Dr ($1,000,000 × 5% × 1 ÷ 2) $25,000

To Cash $25,000

(Being the interest expense is recorded)

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

You might be interested in

Firms pursuing global standardization or transnational strategies tend to prefer _____ arrangements.

astra-53 [7]

Wholly owned subsidiary arrangements are preferred by firms which pursue global standardization or transnational strategies.

This arrangement gives a firm an advantage since it is able to use profits from one market to improve its position in another competitive market.

Another few advantages of wholly owned subsidiary arrangements are tax benefits, limited liability, promotes diversification.

Learn more about wholly owned subsidiary arrangements here:

https://brainly.in/question/8819903

#SPJ4

8 0

1 year ago

Beverley wants to sign up for time warner cable internet onlnie. she has the option to choose residential or business services.

Sindrei [870]

Choose a different server

6 0

3 years ago

Dafna1 [17]

ANSWER: The correct answer is (d)- To serve as an introduction.

Explanation: Executive summary is a brief overview or introduction of the entire plan. It highlights the main points of the marketing plan to the company or business. Mostly people in the authority are occupied to deeply go through the plan so executive summary provides a basic understanding or overview or idea. It provides the summary of objectives and a proposed framework for growth potential.

8 0

3 years ago

Check my work Check My Work button is now enabled3Item 5Item 5 10 points Social Media, Inc. (SMI) has two services for users. To

Nimfa-mama [501]

Answer:

a. Predetermined administration costs - $ 54 per engineering hours

b. Profit per Toot - $ 648,075

Profit per Tix $ 326,450

Explanation:

Computation for predetermined overhead rate for admin costs

Estimated administration costs $ 629,100

Engineering hours - Toot - 6,825

Engineering hours - Tix - 4,825

Total engineering hours 11,650

Predetermined rate for administration costs

$ 629,100/ 11,650 hours $ 54 per hour

Computation of total profit for each service

Administration costs - Toot = 6,825 hours * $ 54 per hour = $ 368,550

Administration costs - Tix = 4,825 hours * $ 54 per hour = $ 260,550

Toot Tix

$ $

Revenues 1,350,000 1,040,000

Engineering costs 333,375 453,000

Allocation of admin costs 368,550 260,550

Total costs 701,925 713,550

Profit per service 648,075 326,450

5 0

3 years ago

David’s friend, Keanu, has hired a financial planner for advice on retirement. Considering Keanu’s current expenses and expected

tatiyna

Answer:

28.85

Explanation

Keanu has decided to save a fixed amount of 70,000 for a given period. We would need to calculate the number of years to achieve 7,796,223 using the FVIFA formula (Future value interest for an annuity)

Fixed payment× FVIFA=Future value

FVIFA = $\frac{(1+r)^{n} - 1}{r}$