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Aleonysh [2.5K]
2 years ago
15

On January 1, 2018, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December

31. The bonds were sold for $146,125, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of
Business
1 answer:
RSB [31]2 years ago
6 0

Answer:

$8,767.50

Explanation:

Calculation for what Legion should report as bond interest expense for the six months ended

Using this formula

Bond interest expense= Carrying Value of Bond x Effective interest rate

Let plug in the formula

Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months

Bond interest expense=$8,767.50

Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50

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goldenfox [79]

Answer:

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R= 3.74%

Nominal rate = 3.74%*2 = 7.49%

8 0
3 years ago
In its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still o
Montano1993 [528]

Answer: See explanation

Explanation:

1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.

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2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.

8 0
3 years ago
An application currently stores all its data on Amazon EBS Volumes. All EBS volumes must be backed up durably across multiple Av
rewona [7]

Answer:

A. Take regular EBS snapshots .

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3 years ago
Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of
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Anon25 [30]

Answer:

Increase , increase

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A decrease in the supply of a product increases in its price. Reduced supply means many buyers competing for the few available products.  The prices of goods or services are determined by the intersection of the demand and supply curves. There is an indirect relationship between supply and price of quantity supplied when demand is constant. A reduced supply results in high prices while an increase in supply causes low prices.

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3 years ago
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