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sergejj [24]
3 years ago
9

Samson Enterprises issued a ten-year, $20 million bond with a 10% interest rate for $19,500,000. The entry to record the bond is

suance would have what effect on the financial statements? Increase assets. Increase liabilities. Increase stockholders' equity. Increase assets and liabilities.
Business
1 answer:
erastovalidia [21]3 years ago
3 0

Answer:

Assets: increase by 19,500,000

Liablities: increase by 19,500,000

Equity: no effect

Explanation:

cash proceeds:  19,500,000

      face value:  20,000,000

   discount              500,000

As the bonds issued were sold below par there is a discount.

the entry will be:

cash              19,500,000

discount on BP 500,000

     bonds payable           20,000,000

This will generate an increase on assets for 19,500,000

and increase liablities for 19,500,000

The issuance of bonds do not generate revenues or expenses. So the equity remains unchanged-

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Unlike traditional manufacturing, flexible manufacturing: a. decreases efficiency. b. lowers unit costs. c. allows the productio
loris [4]

Answer:

The correct answer is letter "B": lowers unit costs.

Explanation:

Traditional manufacturing is the production process by which companies produce goods part to be delivered for sale and part to have them stored in case of shortages which could increase inventory costs.  

Flexible manufacturing concentrates on using technology for mass-production of products characterized to be subject to rapid market changes. <em>Flexible manufacturing saves money in labor costs, thus, lowers the unitary costs of the output.</em>

4 0
3 years ago
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,874. Cash receipts yet to be de
My name is Ann [436]

Answer:

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

J1

Bank $39 (debit)

Interest Earned $39 (credit)

J2

Bank service fee $28 (debit)

Bank $28 (credit)

Explanation:

<em>Step 1 Bring the Cash Balance in the Cash Book up to date</em>

Debit :

Balance as at August 31, 2021,                                   $7,874

Interest Earned                                                                 $39

Totals                                                                            $7,913

Credit:                  

Bank service fee                                                              $28

Balance Up dated (Balancing figure)                         $7,885

Totals                                                                            $7,913

<em>Step 2 Prepare the Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

6 0
3 years ago
During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On
statuscvo [17]

Answer:

c. Kena recognizes a gain of $30,000

Explanation:

cash  650,000 debit

  land 250,000 credit

  gain at disposal 350,000 credit

liabilities 500,000 debit

        cash        500,000 credit

Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash

as her basis is 120,000 there will be a gain for 30,000

4 0
3 years ago
Most CLEP exams correspond to blank college courses
Kamila [148]
True Because they have preperations for your tests
8 0
3 years ago
Why are many goods and services produced in a mixed market economy? A. labor unions are choir members to provide a selection of
ololo11 [35]
The answer is C because it’s decided by who owns the production.
6 0
3 years ago
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