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
lys-0071 [83]
3 years ago
8

On January 1, 2021, a company issues $720,000 of 8% bonds, due in six years, with interest payable semiannually on June 30 and D

ecember 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $754,788.
Required:
(a) Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021. (Round your answers to the nearest dollar amount.)
Business
1 answer:
ASHA 777 [7]3 years ago
4 0

Answer:

a.

1 Jan 2021   Cash                                             $754788 Dr

                         Bonds Payable                            $720000 Cr

                         Premium on Bonds Payable       $34788 Cr

30 June 2021  Interest Expense          $28800 Dr

                               Cash                             $28800 Cr

31 Dec 2021    Interest Expense           $28800 Dr

                               Cash                               $28800 Cr

Explanation:

The bonds are issued at more than their par value thus, it is an issue on premium. The premium amount is the difference in issue value and par value = 754788 - 720000 = 34788

The interest is payable on 8% p.a of par value which come out to be 720000 * 0.08 = 57600

This interest is paid semi annually in cash. the semi annual payment will be 57600 / 2 = $28800

You might be interested in
Apple hosts a large number of forums, which become customers' primary source of product information after warranties expire and
ser-zykov [4K]

Answer:

D. online communities

Explanation:

-Social networks are sites where people can share information and communicate.

-Microblogs are a type of online blog that has short entries.

-Niche networks are networks that focus on a specific group of people.

-Online communities are groups of people that interact on the internet through forums, chat rooms to get information about specific topics.

According to this, these forums are an example of online communities.

4 0
4 years ago
Foster, who owns a successful business with two locations and a few international clients, was approached by a large organizatio
Nadusha1986 [10]

Clearer question;

Tom, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Tom later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies ____.

Answer:

<u>3. can get started more easily and maneuver faster</u>

Explanation:

Remember, a small company is officially viewed as one having less than 500 employees.

So, Tom's business qualifies as such, and it is quite true to a large degree that small companies can get started more easily and maneuver faster since they require less staff management.

4 0
3 years ago
A prepurchase inspection is different from a pre-sale inspection in there
Luba_88 [7]
These inspections are mostly connected to property purchase. The pre-sale inspection is conducted by investors and real estate agents who deal with the property. A pre-purchase inspection is conducted by the buyer who wants to purchase the property. Both are conducted as means of security.
8 0
3 years ago
What education does a childcare director need
nexus9112 [7]

Answer:

An associate's or bachelor's degree in early childhood education is needed to work as a child care director.

Explanation:

4 0
3 years ago
Read 2 more answers
Accounting assessment q15/15 assigning indirect costs to specific jobs is completed by _____.assigning indirect costs to specifi
borishaifa [10]

Assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.

<h3>What are indirect costs?</h3>

Indirect costs are costs that are not directly traceable to cost objects (e.g. a job, product, or service unit).

Indirect costs are overheads incurred as a result of a business activity but without direct impact.  For example, utilities, office supplies, etc. are all indirect costs.

Thus, assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.

Learn more about indirect costs at brainly.com/question/24762880

#SPJ1

5 0
2 years ago
Other questions:
  • A new intelligence test has been devised. an adults shoe size is divided by 6 and multiplied by 100. this test would be consider
    6·1 answer
  • How, specifically, do equal employment laws apply to personnel recruiting activities?
    12·1 answer
  • Bellingham Company produced 4,200 units of product that required 7 standard direct labor hours per unit. The standard variable o
    9·1 answer
  • 4. Which of the following is minced by very thin slicing?
    14·2 answers
  • A liquidity ratio measures the Group of answer choices income or operating success of an enterprise over a period of time. abili
    15·1 answer
  • _____ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficult
    7·1 answer
  • What is my level of education if I just finished 10th grade?
    7·2 answers
  • Based on the passage, who might be interested in your credit report, and why? Check all that apply.
    6·2 answers
  • On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for $53,000. Ranger's net income
    13·1 answer
  • as we look into the future the traditional purchasing approach will be transformed into ____ . ___ will be the tool that drives
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!