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kenny6666 [7]
4 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]4 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

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Answer:

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8 0
3 years ago
Required-: JOURNAL ENTRY (ACCOUNT)
damaskus [11]

- Hey there , ronisha!

Answer:

\large{ \tt{SEE \: THE \: ATTACHED \: PICTURE}}

\large{ \tt{E \: X \: P \: L \: A \: N \: A \: T \: I \: O \: N}} :

  • Full settlement generally means DISCOUNT ALLOWED.

  • Firstly , Read out the question and try to understand. It says we purchased some stuffs of Rs 30000 from the sansee stores and we payed Rs 28000 in full settlement which implies that we received the discount of Rs 30000-28000 i.e Rs 2000.

  • You must have known the rules for debit and credit. As we know In case of personal account , Debit : The receiver , We have sansee stores as the receiver so we placed it in debit side.

  • Remember: When the question says that the cash is payed through cheque , you should always consider cheque as a bank. Now , In the case of personal account , Credit : The giver. Who's the giver? Of course , bank! So , we placed it in credit side.

  • Now , In case of nominal account , Credit : the incomes or gains . The question says we received the discount so obviously it's not expenses. So, We placed discount received in credit side. You must have studied that Every debit should have equal credit. And we're done!

- Hope this helps! Please let me know if you have any questions regarding my answer and also don't hesitate to reach out to me if you need any other help! :)

7 0
3 years ago
Kirk McCoy is district sales manager for the Jimmy Dean division
arlik [135]

Answer: centralized

Explanation:

Based on the information given in the question, we can infer that McCoy operates a centralized department.

This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions

8 0
3 years ago
What is the acceleration of an object that has a mass of 4.0 kg if the net force acting on it is 26N
Lynna [10]
Use Newton's Second Law: Fnet = ma
where Fnet = total net force, m = mass of object, and a = acceleration of object.

You are given Fnet = 26N and m = 4.0kg. Plug them into the equation and solve for a:
26 = 4.0a
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The answer is 6.5 m/s^2
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3 years ago
Isabella is working with her boss on how to achieve the goals that have been set for the next year. So far they have agreed that
EastWind [94]

Answer:

B) MBO

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