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
Mila [183]
3 years ago
13

On the first day of the fiscal year, a company issues an $949,000, 9%, five-year bond that pays semiannual interest of $42,705 (

$949,000 x 9% x 1/2), receiving cash of $892,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.
Business
1 answer:
KonstantinChe [14]3 years ago
7 0

Answer:

Bond issue price                                                    $892,100

Face value                                                              $949,000

Discount on bond                                                   $56,900

Number of Interest payments (10 years x 2)          10

Discount to be amortized per payment                $5,690

Interest on bond                                                    $51,210

Date        Description                               Debit        Credit

Dec.  31 Bond interest expense             $56,900

              Discount on bonds payable                      $5,690

              Cash                                                           $51,210

              (Interest on bond paid and Premium amortized)

You might be interested in
A barter economy is different from a money economy in that a barter economy
fredd [130]

Answer:

The answer is;

people trade goods directly with goods rather than through using money

Explanation:

In that a barter economy, people trade goods directly with goods rather than through using money.

Money is not used in a barter economy. Barter economy was experienced a very long time ago.

For example, Mr A. has yam at home but needs rice, he has to look for someone that wants yam in exchange for the rice he needs

3 0
3 years ago
Your grandparents would like to establish a trust fund that will pay you and your heirs $225,000 per year forever with the first
xz_007 [3.2K]

Answer:

They must deposit $5,113,636.36.

Explanation:

Giving the following information:

Cash flow= $225,000

Interest rate= 4.4 percent

To determine the amount to be deposited today, we need to use the perpetual annuity formula:

PV= Cf/i

Cf= cash flow

PV= 225,000/0.044

PV= $5,113,636.36

They must deposit $5,113,636.36.

3 0
3 years ago
What is one main feature of the free enterprise system
earnstyle [38]

Answer:

Businesses that produce good products are rewarded with profits

Explanation:

In the free enterprise system, governments do not interfere with economic activities in the country. The private sector does all the production and distribution of goods and services.

No restrictions are put in place on the type or number of businesses that entrepreneurs can operate. Due to this reason, business competition is very intense. Customers choose their preferred products from a wide variety offered by the many suppliers. Producers who make products that satisfy customers' needs are rewarded with profits.

7 0
3 years ago
Only people who own property need insurance<br><br><br>true or false
MAVERICK [17]

Answer:

false

Explanation:

pretty sure that is false as one can have life insurance without property.

Still double check...

5 0
2 years ago
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution m
rjkz [21]

Answer:

c. variable selling and administrative expenses

Explanation:

On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the <u>variable selling and administrative expenses.</u> Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.

6 0
2 years ago
Other questions:
  • Compare transnet with a perfect competitor in terms of price and output and profit
    7·1 answer
  • According to the _____, the most effective management theory or idea depends on the kinds of problems or situations that manager
    5·1 answer
  • Smaller bags of items are generally priced lower per unit than larger bags.
    15·1 answer
  • Gamma Corp. is expected to pay the following dividends over the next four years: $5, $12, $18, and $1.80. Afterward, the company
    7·1 answer
  • Which of the following statements is not true about an evaluative interview?
    8·2 answers
  • The resource-based view of global business differs from the institution-based view of global business in that the resource-based
    14·1 answer
  • You learned in the lesson how the stock market influences the economy. Do you have to own stocks to be impacted personally by th
    9·1 answer
  • During 2020, Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her proprietorship
    5·1 answer
  • Michael’s personal property in his college dorm room is insured by an endorsement on his parents’ homeowners insurance. The dedu
    9·1 answer
  • if variable cost increases by $1/unit, advertising cost increases by $1,500, and units sales increase by 250, what would be the
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!