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3 years ago

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of

Business

1 answer:

borishaifa [10]3 years ago

8 0

Answer:

c. interest paid over the life of the bond minus the amount of premium at sale

point.

Explanation:

when bonds are issued at premium the total interest cost of the bonds over the life of the bonds is equal to the amount of interest paid over the life of the bond minus the amount of premium at sale point.

From below journal entry you can see that, When interest payment is made cash is credited full amount but interest is debited after deducting amortised premium.

Journal entry if bonds are issued at premium

cash xx

Bonds Payable xx

Premium on bonds payable

Interest Expense xx

Preminum on bonds payable xx

cash xx

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3 years ago

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3 years ago

To say that "the U.S. public debt is mostly held internally" is to say that:_______ a. the bulk of the public debt is owned by U

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3 years ago

Madison Inc. reported sales of $1,000,000, a debit balance in Accounts Receivable of $80,000, and a credit balance of $5,000 in

aniked [119]

Answer:

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Two entries will be required

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3 years ago

Read 2 more answers

Larkspur University sells 4,800 season basketball tickets at $60 each for the entire 15-game home schedule. (a) Give the entry t

snow_tiger [21]

Answer:

The Journal entry is as follows:

Cash A/c Dr. $288,000

To Unearned basketball ticket revenue A/c $288,000

(To record the sale of the season tickets)

Workings:

Given that,

Total number of tickets sold = 4,800

Selling price of ticket = $60 each

Cash = season basketball tickets sold × Selling price of each ticket

= 4,800 tickets × $60 per ticket

= $288,000

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3 years ago