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docker41 [41]
3 years ago
14

On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on Decembe

r 31, 2025. The bond has a contract rate of interest of 5% and interest is paid semi-annually on June 30 and December 31 of each year. On January 1, 2020, the market rate of interest for bonds was 6%. The issue price of the bond was $382,942. The journal entry to record issuance of the bond would be:
Business
1 answer:
Genrish500 [490]3 years ago
4 0

Answer:

The journal entry to record issuance of the bond would be:

Debit : Cash    $382,942.

Credit : Bonds Payable  $382,942.

Explanation:

At Issuance of Bonds, we recognize the Cash Asset and the Liability Bond Payable at the Issue Price of the Bond instead of Face Value.

The Issue Price is also known as the Present Value or Current Price of the Bond and for this question this was given as $382,942.

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Matured Water Services had net income for the month of October of $ 50 comma 880. Assets as of the beginning and end of the mont
Lelu [443]

Answer:

12%

Explanation:

Given that,

Net income = $50,880

Asset at the beginning = 362,000

Asset at the end = 486,000

Average total assets:

= (Asset at the beginning + Asset at the end) ÷ 2

= (362,000 + 486,000) ÷ 2

= $424,000

Therefore,

ROA = Net income ÷ Average total assets

        = $50,880  ÷ $424,000

        = 0.12 or 12%

Therefore, the Matured Water Services' ROA for the month of October is 12%.

3 0
3 years ago
19. An important feature of Emergency Operation Plans is that they ________________________________.
BigorU [14]

Answer:

provide a uniform response to all hazards that a community may face.

Explanation:

Emergency Operation plan is referred to that document which focus on response given to particular emergency. it direct guideline which focus planning for any disaster in efficient and effective way.

It include six element on which this plan work. some of them are listed below:

1- communication

2 -resources and assets

3- safety and security

4 - staff responsibilities

5 -utilities

6 -clinical support

7 0
4 years ago
Why can a bank afford to pay an interest rate on a savings account?
Zolol [24]
Because your basically loaning the bank your money for them to use and they pay you a fee.
4 0
3 years ago
What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?
topjm [15]

The dividend of a stock would always depend on the face value of the share. Therefore the dividend is calculated by:

Dividend = (Face Value) * (Interest rate)

Dividend = $50 per share * 0.08

<span>Dividend = $4 per share                                (ANSWER)</span>

7 0
3 years ago
Tim has a list of items that his administrative assistant needs to order for the company. he mentions them to her as he passes h
Burka [1]
<span>Tim has introduced an opportunity for error. If Tim had sent her a list, there would be little to no possibility for her to make a mistake, while leaving an easy to read paper trail. If the supplies come in different from the requested order, it will be impossible to verify who made the mistake.</span>
5 0
3 years ago
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