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
Scorpion4ik [409]
3 years ago
12

On November 1, 20x1, Bishop Company issued 10% bonds with a face amount of $20 million. The bonds mature in 10 years. For bonds

of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on April 30 and October 31. Bishop is a calendar-year corporation.Required:(1.) Determine the price of the bonds at November 1, 20x1.(2.) Prepare the journal entry to record the bond issuance by Bishop on November 1, 20x1.(3.) Prepare the journal entries (using the effective interest method):a. December 31, 20x1b. April 30, 20x2c. October 31, 20x2
Business
1 answer:
lapo4ka [179]3 years ago
7 0

Answer:

The issue price of the bonds is $ 17,706,015.76  as contained in the attached

The double entries upon bond issuance are as follows:

Dr Cash                            $17,706,015.76

Dr  Discount on bond      $ 2,293,984.24

Cr Bonds payable                                            $20,000,000.00

The journal entries for the interest are found in the attached.

Explanation:

Ultimately, the bond issue at a discount of $ 2,293,984.24  

($20,000,000.00-$17,706,015.76)  

Download xlsx
You might be interested in
In an Internal Service Fund, the expectation is that:_____.A. Each year's revenues should equal each year's expenses because the
Elis [28]

Answer:

In an Internal Service Fund, the expectation is that:_____.

A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.

Explanation:

There are two proprietary funds used in governmental accounting.  One is the internal service fund.  The other one is the enterprise fund.  The internal service fund tracks the goods or services rendered by a service department to other governmental departments.  It is established on a cost reimbursement basis.  This is why the expenses for the year are expected to equal the annual revenue.

7 0
2 years ago
A building with an appraisal value of $128,156 is made available at an offer price of $153,050. The purchaser acquires the prope
elena55 [62]

Answer:

$117,201

Explanation:

Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is

Using this formula

Cost basis=Cash+Note payable+Mortgage

Let plug in the formula

Cost basis=$32,829+$26,957+$57,415

Cost basis=$117,201

Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201

7 0
3 years ago
In​ 1885, first-class postage for a​ one-ounce letter cost​ $0.02. The same postage in 2015 costs​ $0.49. What compounded annual
geniusboy [140]

Answer:

2.49%

Explanation:

The period 't' between 2015 and 1885 is:

t = 2015 -1885 = 130\ years

The annual rate 'r' at which the original $0.02 value has been compounded over 130 years to reach a value of $0.49 is determined by:

0.49 = 0.02*(1+r)^{130}\\r=\sqrt[130]{24.5}-1\\ r=0.0249 = 2.49\%

The cost of​ first-class postage has experienced an annual increase of 2.49% over this period.

6 0
2 years ago
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the supply of new rooms over the next
alexandr402 [8]

Answer:

C) The threat of new entrants.

Explanation:

Porter's Five Forces: It's an analysis helpful for the industries to get the understanding of the loopholes and their weaknesses. Porter suggested that anytime a company goes down, there would be one force involved among the following five forces.

  1. Threat of new entrants.
  2. Bargaining power of buyers.
  3. Threat of substitutes.
  4. Rivalry among existing competitors.
  5. Bargaining power of suppliers.

In our case:  

  • Threat of new entrants force is involved: There is always a threat to the existing companies of the new company entering the market. Some companies doesn't take them seriously and ends up getting damaged. And, as the Goldman suggests that new supplies of the rooms in coming years will hurt the existing companies. So they must act on this information and make a decision to change the event for their own better.  
4 0
3 years ago
AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next
Katarina [22]

Answer:

For plastic

Year 1   97,000 units per year and 2 operators

Year 2  115,000 units per year and 3 operators

Year 3  136000 units per year and 3 operators

Year 4  141000 units per year and 3 operators

For bronze

Year 1 21000 units per year, 2 machines and 4 operators in total

Year 2  24000 units per year, 2 machines and 4 operators in total

Year 3 29000 units per year, 3 machines, 5 operators in total

Year 4 34000 units per year, 3 machines, 6 operators in total

Explanation:

for plastic,

since there is only one machine that is operated by 4 operators,

Units per operator= Machine speed/number of operator

                             = 200,000/4

                             = 50,000 units per operator

so for year 1, for 97,000 units 2 operators will be enough and for year 2, year 3 and year 4, 3 operators will be enough

for Bronze

since there are 3 machines and total number of 6 operators,

Units per operator= sum of speed of all machines/total number of operator

                            =  36000/6

                           =  6,000 units per operator

so for year 1 for 21,000 units per year, 4 operators will be required (6000×4) with 2 machines

 for year 2 for 24000 units per year, 4 operators will be requried with 2 machines

for year 3 for 29,000 units per year, 3 machines will be required with 5 operators to meet the demand

for year 4 for 34,000 units, 3 machines will be requried with 6 operators

4 0
3 years ago
Other questions:
  • Pleasant Hills Properties is developing a golf course subdivision that includes 250 home lots; 100 lots are golf course lots and
    12·1 answer
  • How do i know what business i am suited for
    9·1 answer
  • Example: Davidson-Getty Chemicals has 8,000 employees. Each employee earns two weeks to paid vacation per year. Vacation time no
    14·1 answer
  • The break-even quanity for a certain kitchen appliance is 6000 units. The selling price is $10 per unit, and the variable cost i
    11·1 answer
  • Hubert lives in San Diego and runs a business that sells guitars. In an average year, he receives $701,000 from selling guitars.
    14·1 answer
  • Are the materials costs and processing costs relevant in the choice between alternatives A and B?
    13·1 answer
  • Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply the housing. Assumin
    9·1 answer
  • Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpet
    13·1 answer
  • Periods 10% 11% 12% 13% 14% 1 0.909 0.901 0.893 0.885 0.877 2 1.736 1.713 1.690 1.668 1.647 3 2.487 2.444 2.402 2.361 2.322 4 3.
    9·1 answer
  • “Every individual employee in an organization plays a role in controlling work activities.” Do you agree with this statement, or
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!