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sertanlavr [38]
3 years ago
13

On January 1, a company issues bonds dated January 1 with a par value of $250,000. The bonds mature in 5 years. The contract rat

e is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $260,148. The journal entry to record the issuance of the bond is: Multiple Choice Debit Cash $250,000; debit Premium on Bonds Payable $10,148; credit Bonds Payable $260,148. Debit Cash $260,148; credit Premium on Bonds Payable $10,148; credit Bonds Payable $250,000. Debit Bonds Payable $250,000; debit Bond Interest Expense $10,148; credit Cash $260,148. Debit Cash $260,148; credit Bonds Payable $260,148. Debit Cash $260,148; credit Discount on Bonds Payable $10,148; credit Bonds Payable $250,000.
Business
1 answer:
lutik1710 [3]3 years ago
8 0

Answer:

Debit Cash $260,148; credit Premium on Bonds Payable $10,148; credit Bonds Payable $250,000

Explanation:

The journal entry is shown below:

Cash $260,148

       To Bond payable $250,000

       To Premium on bonds payable $10,148

(Being the issuance of the bond is recorded)

While recording this we debited the cash as cash is received and credited the bond payable as it increased the liabilities and the difference is credited to the premium on bonds payable i.e $10,148

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Arthur, the ruler of Avalon, has asked for your help with the economy of his country. Arthur's economic minister provides you wi
WARRIOR [948]

Answer:

King Arthur, right now Avalon's unemployment rate is <u>12.5%</u> but Avalon's natural rate of unemployment is 14.58%. Therefore, the Avalon economy is currently in a expansion.

Explanation:

Number of Unemployed = Labor force - Employed

Number of Unemployed = 24 - 21

Number of Unemployed = 3

The unemployment rate = (3/24)*100

The unemployment rate = 12.5%

The Natural unemployment rate = Frictional Rate + Structural unemployment Rate

The Natural unemployment rate = [(2+1.5)/24]*100

The Natural unemployment rate = (3.5/24) * 100

The Natural unemployment rate = 14.58%

From the solution, the current unemployment rate less than natural rate,  thus the Avalon economy is currently in a expansion

8 0
3 years ago
The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market shar
nikdorinn [45]

Answer:

The correct answer would be, Greg's next step is to roll out his Tactical Goals to his staff.

Explanation:

Greg is the division manager for Tasty Foods. His management set a goal of increasing market share and decreasing the corporate cost over the period of next three years. To cope up with this goal, Greg has to work on this from now onward. So he decides how his division can contribute to the fulfillment of these management goals. He looking into his resources and planned two possible options. One is to partnering with another company and the other is to hire a procurement manager to negotiate lower prices from vendors. Now as he has formulated these goals, which are tactical in nature, the next step is to roll out these tactical goals to hi staff. Tactical goals are the goals that are set quickly in response to the conditions or situations as they occur in the real world.

6 0
3 years ago
The following income statements were drawn from the annual report of The Western Sales Company. Year 2 Year 1 Sales 40,000 40,00
aniked [119]

Answer:

$9,555

Explanation:

As for the trend provided, the year 3 Sales will also be $40,000

Cost of goods sold will be $25,000

gross margin = $15,000

Operating expenses are decreasing with time by \frac{9,000 - 7,000}{9,000} = 0.22

Thus, it will decrease with the same trend = $7,000 - 22.22% = $5,445

Rounded off

Therefore, net income = $15,000 - $5,445 = $9,555

Note: Gain on sale of land is one time event and not permanent, thus it will not be considered as part of trend.

3 0
3 years ago
Opera Corp uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost
Kryger [21]

Answer:

$159,057

Explanation:

The computation of cost of goods sold is shown below:-

Total cost of goods available for sale = (7,200 × $10) + (4,000 × $13) + (12,000 × $13.50)

= $72,000 + $52,000 + $162,000

= $286,000

Total units = 7,200 + 4,000 + 12,000

= 23,200

Average cost per unit = Total cost of goods available for sale ÷ Total units

= $286,000 ÷ 23,200

= $12.33

So,

Cost of Goods sold = Sold units during the month × Average cost per unit

= 12,900 × $12.33

= $159,057

Therefore for computing the cost of goods sold for the month we simply applied the above formula.

3 0
3 years ago
Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity
Deffense [45]

Answer:

$650,000

Explanation:

For computing the decrease in the  expected bankruptcy costs, first we have to determine the total firm value in each case which is shown below:

Total firm value = Equity + Debt × corporate tax rate

                          = $17,850,000 + $6,000,000 × 0.35

                          = $17,850,000 + $2,100,000

                          = $19,950,000

Now the total firm value based on market share

= Equity + Debt

= 350,000 shares × $38 + $6,000,000

= $13,300,000 + $6,000,000

= $19,300,000

The difference would be

= $19,950,000 million - $19,300,000

= $650,000

5 0
3 years ago
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