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Ludmilka [50]
3 years ago
7

On January 31, 2021, B Corp. issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2020, and

mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2016, balance sheet?
a. $18,000.


b. $36,000.


c. $54,000.


d. $48,000.
Business
1 answer:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

a. $18,000

Explanation:

Data given

Face value = $600,000

Bonds = 12%

The computation of accrued interest payable is shown below:-

Accrued interest to be reported as at Dec 31 = Face value × Interest rate × Time period (From July to September)

= $600,000 × 12% × (3 ÷ 12)

= $600,000 × 3%

= $18,000

Therefore for computing the accrued interest payable we simply applied the above formula.

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Fargus Corporation owned 55% of the voting common stock of Sanatee, Inc. The parent's interest was acquired several years ago on
Nadusha1986 [10]

Answer:

See explanation for the answer.

Explanation:

1.

Balances of bonds payable, bond investment, interest income and interest expense are to be considered

Proceeds from for bonds (1400000*50%*0.95)                   665000

Carrying value of bonds  

Face value (1400000*50%)                                        700000  

Unamortized premium (8/10*(1400000*50%*0.09)) 50400  

Carrying value                                                                  750400

Gain on retirement of bonds                                            85400

2.

General journal                                   Debit                  Credit

Bonds payable                                   700000  

Premium on bonds payable                   44100  

Interest income                                    74375  

Investment in bonds (665000+4375)                          669375

Interest expense                                                          63700

Gain on retirement                                                  85400

5 0
3 years ago
PLEASE HELP URGENT 30 points!
solniwko [45]

Answer:

that would be employers or acquaintances

3 0
3 years ago
Read 2 more answers
If a county government decided to build parks, then the money and resources would not be available for additional fire fighters.
Keith_Richards [23]

Answer:

a. Misallocation of resources

Explanation:

Misallocation of resources implies that assets are not put to their best, best, or proficient use. The utilization of the term misallocation in financial matters is that market analysts recognize two kinds of efficiencies: productive and allocative. The productive alludes to the (effective) utilization of assets to deliver given merchandise and ventures. The allocative alludes to which merchandise and enterprises ought to be created, and who ought to get the opportunity to devour them. Financial matters are generally worried about allocative thought of productivity.

3 0
3 years ago
Exploring the cost of transporting goods is part of which step in the screening process for potential markets and sites?
mario62 [17]

B) Step 2: Assess the national business environment is part of which step in the screening process for potential markets and sites.

The national environment of a business consists of economic, demographic, natural, cultural and political forces. The external environment of a company is often divided into an economic environment, a political and governmental environment, a sociocultural environment, and an international environment.

A state-owned enterprise is a company that operates within the borders of a particular country. Like local companies, state-owned companies understand the culture of the country and develop products and services to satisfy the market. For example, Donut Time is a donut shop that operates throughout Australia.

The question is incomplete. Please read below to find the missing content.

Exploring the cost of transporting goods is part of which step in the screening process for potential markets and sites?

A) Step 1: Identify basic appeal

B) Step 2: Assess the national business environment

C) Step 3: Measure market or site potential

D) Step 4: Select the market or site

Learn more about the national business environment here: brainly.com/question/22728969

#SPJ4

4 0
2 years ago
Use the information below to answer the following question. The following lots of a particular commodity were available for sale
Andreas93 [3]

Answer:

$1,510

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

The business had a total of 40 inventories.

The inventories sold = 40 - 20 = 20

The cost of the goods sold would first be alloted to the 3rd purchased inventory = 10 x $77 = $770

The remaining cost of goods sold would be allocated to the 2nd purchase of inventory = 10 x $74 = $740

Total = $740 + $770 = $1,510

I hope my answer helps you

8 0
3 years ago
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