When you're using a pneumatic impact tool such as a rivet hammer, chipping hammer, or other such tool, the pr

On January 1, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannuall

Minchanka [31]

Answer:

The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.

Explanation:

This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.

The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.

So, the appropriate journals to record this transaction is as provided above.

4 0

3 years ago

Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual divi

shutvik [7]

Answer:

28.63%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of the preferred stock = Dividend ÷ Price of the stock

where,

Dividend is

= $1,000 × $15%

= $150

And, the price of the stock is

= Market value of the stock - flotation cost

= $576 - $52

= $524

So, the cost of preferred stock is

= $150 ÷ $524

= 28.63%

We ignored the marginal tax rate i.e 40%

3 0

3 years ago

Which job analysis method requires subject-matter experts to evaluate a job in terms of abilities required to perform the job

Alexxx [7]

Answer:

Fleishman Job Analysis System

Explanation:

Fleishman Job Analysis System. Job analysis technique that asks subject-matter experts to evaluate a job in terms of the abilities required to perform the job. - useful for employee selection, training, and career development Competency.

5 0

2 years ago

Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners

MatroZZZ [7]

The ending equity is $315,000 This is just a matter of adding income and subtracting withdraws. So let's do it. "Cragmont has beginning equity of $277,000," x = $277000 "net income of $63,000" x = $277000 + $63000 = $340000 "withdrawals of $25,000" x = $340000 - $25000 = $315000

3 0

3 years ago

True or False: Some nonactivists believe in a predetermined-money growth rate, which suggests that the monetary authorities shou

Paraphin [41]

True Some no activist believe in a predetermined money growth rate

6 0

3 years ago