Which of these is most likely to make you sleepy while you’re reading?

Hillside issues $2900000 of 9% 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. T

DaniilM [7]

Answer:

Dr. Cash $3,549,590

Cr. Premium on Account Receivable $649,590

Cr. Bond Payable Account $2,900,000

Explanation:

The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.

Premium on the Bond = Face value - Sale value = $3,549,590 - $2,900,000 = $649,590

The Premium will be amortized during the life of the bond to maturity and deducted from the interest expense.

3 0

3 years ago

Judy acquired passive Activity A in January 2013 and Activity B in July 2014. Until 2018, Activity A was profitable. Activity A

Crazy boy [7]

Answer:

Judy may deduct $54,000 of the net losses.

Explanation:

2018 Passive Activity Limitations $39,500

Passive Income ($33,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $6,000

2019 Passive Activity Limitations $69,500

Passive Income ($21,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $48,000

$54,000 Suspended Passive Activity Limitations

7 0

3 years ago

Denver Company engages Public Company to produce a large machine, install the machine, and train their employees on the machine.

nata0808 [166]

Answer:

Results are below.

Explanation:

Giving the following information:

Machine= $800,000

Installation= $100,000

Training= $100,000

Total= 1,000,000

Denver and Public agree to a total contract price of $920,000.

First, we will determine the sales proportion:

Machine= 800,000/1,000,000= 0.8

Installation= 100,000/1,000,000= 0.1

Training= 100,000/1,000,000= 0.1

Now, we can allocate the price to each one:

Machine= 920,000*0.8= 736,000

Installation= 920,000*0.1= 92,000

Training= 920,000*0.1= 92,000

4 0

3 years ago

The investor-supplied items—debt, preferred stock, and common equity—are called capital components. Increases in assets must be

Brrunno [24]

Answer:

True

Explanation:

The statement is true; companies usually attain extra financing either by debt or equity (Preferred stock or common stock). Organisations for the most part have a decision with respect to whether to look for Preferred stock, common stock or Debt financing. The decision frequently relies on which source of financing is most effectively available for the organisation. Firms and organisation use that extra funds from stock to invest in new ventures and to buy new machinery, which increases the overall assets of the company.

6 0

3 years ago

In which of the following economic systems is the government's role greatest?

Fed [463]

Answer:

command has the government role

8 0

3 years ago