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nataly862011 [7]
3 years ago
8

On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 2

0 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. Which of the following shows the journal entry required to recognize the bond issue on January 1, Year 1?
Business
1 answer:
DENIUS [597]3 years ago
7 0

Answer:

Dr Cash account 50,000

Cr Bonds Payable account 50,000

Explanation:

The company received $50,000  in cash. Since cash is an asset and it increased when the bonds were issued, it should be debited.

The company has to pay bonds worth $50,000. Since bonds payable is a liability and it increased when the bonds were issued, it should be credited.

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The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas
sashaice [31]

Answer:

The answer is 750

Explanation:

When government increases its spending, this increase in spending leads to increases in income for households which cumulatively increase the national income, this effect is known as multiplier effect.

Government has increased its spending by 250 while multiplier effect is 3.

Therefore, output will increase by 750(250 x 3)

3 0
3 years ago
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The
lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

6 0
3 years ago
Smith Machining makes three products. The company’s annual budget includes $1,048,000 of overhead. In the past, the company allo
Flauer [41]

Answer:

The computation is shown below:

Explanation:

a. The company overhead rate based on direct labor is

= Total Overheads ÷ Direct Labor Hours

= $1,048,000 ÷ 40,000

= $26.2 per hour

b) Overheads Rate using Activity Based Costing  is

= Cost ÷ Activity level

For  Order Processing, it is

= $226,800 ÷ 14,000 orders

= $16.2 per order

For setups, it is

=  $157850 ÷ 4,100 setup

= $38.5 per setup

For Milling, it is  

= $395,850 ÷ 20,300 machine hours

= $19.5 per machine hour

For Shipping

= $267,500 ÷ 25,000

= $10.7 per shipment

We simply applied the above formula so that the per unit could come

6 0
4 years ago
Individual marketing across segments creates more total sales than any other type of marketing. ​
Flura [38]

Answer:

false

Explanation:

7 0
3 years ago
Millions of West Africans who migrated to Nigeria during the 1970's, when the country's economy expanded, were expelled during t
lorasvet [3.4K]

Answer:

Pull factor becoming a push factor

Explanation:

Nigeria is the most populous black nation on earth and attracts a lot of tourist as well as investors at every point in time. During the 1970's, there was migration of people from other west African countries due to the economic stabilty and increasing economic expansion, thus making Nigeria a place to search for greener pasture within the continent. In the 1980's, there was an economic downturn that hit the country so hard that Nigerians started calling for the exit of fellow african nationals in the country. Most affected country then was Ghana and there was a slogan with tthe phrase 'Ghana-must-go'.

The phrase went on to become the name of the bags with which Ghanians left tthe country with.

N.B: look up Ghana-must-go bags on google.

Cheers.

8 0
3 years ago
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