1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kenny6666 [7]
3 years ago
15

Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the a

nnual market rate for these bonds is 8%, which implies a selling price of 117¼. Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1.
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer:

The journal entry for the issue of bond for cash is shown below:

Explanation:

January 1

Cash A/c..........................................Dr  $281,400

   Bonds Payable A/c....................................Cr $240,000

    Premium on Bonds Payable A/c...........Cr $41,400

Working Notes:

Cash = Bonds Par Value × Selling Price

= $240,000 × 117.25 %

= $281,400

Premium on bonds payable = Cash - Bonds Payable

= $281,400 - $240,000

= $41,400

You might be interested in
Consider two markets: the market for coffee and the market for hot cocoa·The initial equilibrium for both markets is the same, t
den301095 [7]

Answer:

The elasticity of supply for hot cocoa is 1.43.

(D) Supply in the market for coffee is less elastic than supply in the market for hot cocoa

Explanation:

Using the midpoint formula,

Elasticity of supply for hot cocoa = (change in quantity supplied/average quantity supplied) ÷ (change in price/average price)

change in quantity supplied = 101 - 31 = 70

average quantity supplied = (101+31)/2 = 66

70/66 = 1.06

change in price = 9.75 - 4.5 = 5.25

average price = (9.75+4.5)/2 = 7.125

5.25/7.125 = 0.74

Elasticity of supply for hot cocoa = 1.06 ÷ 0.74 = 1.43. The supply for hot cocoa is elastic because the elasticity of supply is greater than 1.

Elasticity of supply for coffee = (73 - 31)/(73+31)/2 ÷ 0.74 = 42/52 ÷ 0.74 = 0.81 ÷ 0.74 = 1.09. The supply for coffee is elastic because the elasticity of supply is greater than 1.

However, supply in the market for coffee is less elastic than supply in the market for hot cocoa because the elasticity of supply for coffee is less than that of hot coffee.

7 0
3 years ago
How does the type of product you’re considering affect your conclusions in the questions above: specifically, does it matter if
soldier1979 [14.2K]

Answer:

the type of product affects the buying conclusions that a person makes

3 0
3 years ago
A ticket to a concert costs $45. You have a ticket and can resell it for $75. Your opportunity cost of actually attending the co
Amanda [17]

Answer:

$75

Explanation:

7 0
2 years ago
As diversity grows in both society and the workplace, interacting and communicating with your coworkers will present specific ch
Liono4ka [1.6K]

I agree with you on that

5 0
3 years ago
Read 2 more answers
The growth rate of​ Zerbia, a small developing​ country, has fallen close to zero percent in the current year. Harry Miller and
motikmotik

Answer:

Option C                                                

Explanation:

Clearly placed, the right response is obvious through the sentence 'Harry assumes, on the another side, that any improvement in governmental expenditures will have a huge effect on GDP.' Comparison is made with the result with utilizing the economic management instrument, that is, budget expenditures and taxation.

Thus, from the above we can conclude that the correct option is C.

7 0
3 years ago
Other questions:
  • How do communist and socialist political theories differ from each other?
    14·1 answer
  • For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as foll
    9·1 answer
  • Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at 75% of full capacity, and no
    11·1 answer
  • Prepare a tabular summary to record the transactions for the month using a perpetual inventor system.
    14·1 answer
  • For product costs associated with a particular product to be reported on the income statement:
    12·1 answer
  • Question 21 (3.333333333 points)
    8·1 answer
  • A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from
    15·1 answer
  • Innovation and enterprise
    7·1 answer
  • Sandhill Corporation loaned $590000 to another corporation on December 1, 2020 and received a 3-month, 6% interest-bearing note
    6·1 answer
  • During 2020, Sandeep had the following transactions: Salary $ 80,000 Interest income on City of Baltimore bonds 1,000 Damages fo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!