Goodnight y’all ! I just wanted to tell y’all that

On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735

Mnenie [13.5K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Interest paid semiannually on July 31, and Jan 31,

so the rate of interest is :- 9% × 6÷12 = 4.5% and 8% × 6÷12 = 4%

Date Interest Paid interest 4% Amortized Carrying value

expenses 4.50% discount amount

February,1 $735,474

July,31 $33,096 - $32,400 $696 $736,170

Jan.31 $33,128 - $32,400 $728 $736,898

Working note =

Paid interest = $810,000 × 4÷100 = 32,400

Interest expenses in July,31 = $735,474 × 4.5 ÷ 100

= 33,096.33 or $33,096

Interest expenses in January,31 = $736,170 × 4.5÷100

= 33,127.65 or $33,128

Carrying Value = Previous Carrying Value + Amortized Discount Amount

July,31

= $735,474 + $696

= $736,170

Jan,31 = $736,170 + $728 = $736,898

Journal Entry

Feb,1 Cash A/c Dr. $735,474

Discount on bonds payable A/c Dr. $74,526

To bonds payable A/c $810,000

(To Record the issuance of bond)

July,31 Interest expense A/c Dr. $33,096

To Discount on bonds payable A/c $696

To Cash A/c $32,400

(To Record the interest expense)

Dec,31 Interest expense A/c Dr. $27,606

(9% × 5÷12) × $736,170

To Discount on bonds payable A/c $606

To Cash A/c $27,000 (8% × 5÷12) × $810,000

(To Record the accrued interest)

Jan,31 Interest expense A/c Dr. $5,522

Interest payable A/c Dr. $27,000

To Cash A/c $32,400

To Discount on bonds payable A/c $122

($728 - $606) = $122

(To Record the interest on January)

8 0

3 years ago

A _____ is an instrument issued by a bank, post office, or express company indicating that the payee may request and receive the

Firdavs [7]

The answer is money order because it is an instrument used by a post office, express company and mostly by banks indicating that the payee may request and receive the amount indicated on the instrument or the money order. The money order is a trusted method of a payment than issuing a check because sometimes we get a bouncing check. A money order is a payment order for the amount of money you borrow in the banks or any express company that uses this instrument. And It is required that the funds should be prepaid for the amount shown in it.

5 0

3 years ago

Miguel was asked to improve his company's report format. Many employees and clients found the reports hard

VLD [36.1K]

In order to increase the readability, Miguel can use:

Shorter lines.
Columns.
Boxes.

<h3>Improving readability </h3>

Miguel can use shorter lines so that the chances of people getting lost when reading a sentence is reduced. He can also present the information in different columns for more organization.

Another way to organize the information can be in boxes. These can explain concepts away from the text so that the report is less cluttered.

In conclusion, there are several ways to increase readability.

Find out more on readability at brainly.com/question/3923453.

7 0

2 years ago

I need help with question 1 and 2!!

Mila [183]

Pneumonoultramicroscopicsilicovolcanoconiosis

5 0

3 years ago

Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business,

ArbitrLikvidat [17]

Answer: (1) journal Total Dr $27,282, Cr $27,282 (2) cash Account Dr: Total $21,823, Cr Balance c /d $19,613 Total $21,823, salary payable Total Dr $381, Cr $381,Account receivable Account Dr :Total $1,929 Cr Total $1,929, salary expense Account Dr Total $ 1,524 Cr: $1,524, common stock Total Dr : $18,270 Cr: Total $18,270, Supplies Account Total Dr : $1,320, Cr $1,320, Account Payable Total Dr :$1,320, Cr :Total $1,320, service revenue Total Dr : $4,771, Total Cr : $4,771, unearned revenue Total Dr :$712, Total Cr :$711, (3) Trial Balance Total Dr $24,767, Total Cr : $24,767

Explanation:

(1) The journal entry for the transaction will be

Apr 1 Dr : Cash $18,270, Cr : common stock $18,270

Apr1 Dr: salary payable$381,Cr: cash $381

Apr 2 No entry required

Apr 3 Dr : supplies $1,320, Cr : Account payable $1,320

Apr 10 Dr Account Receivable $1,929, Cr : service revenue $1,929

Apr 11 Dr cash$ 711,Cr: unearned revenue$ 711

Apr 20 Dr: Cash $2,842, Cr : service revenue $2,842

Apr 30 Dr : $ Account Payable $305 Cr : Cash $305

(2) The T Account will be

Cash Account

Dr common stock $18,270, unearned revenue $711, service revenue $2,842

Cr : salary payable $381, salary expense $1,524, Account payable $305,Bal c/d $19,613 Total Dr $21,823, Cr : $21,823

Salary payable Account

Dr : cash $381,Cr: Balance c/d $381 Total Dr $381,Cr :$381

Account Receivable Account

Dr: service revenue $1,929, Cr: Balance c/d $1,929 Total Dr $1,929, Cr $1,929

Salary expense Account

Dr: salary expense $1,524, Cr Balance c/d $1,524, Total Dr $1,524,Cr $1,524

Common Stock

Dr : Balance c /d $18,270, Cr :Cash $18,270 Total Dr $18,270, Cr $18,270

Supplies Account

Dr: Account payable $1,320, Cr Balance c /d $1,320, Total Dr $1,320, Cr $1,320

Account Payable

Dr: Cash $305,Balance c/d $1,015, Cr supplies $1,320, Total Dr $1,320, Cr $1,320

Service Revenue Account

Dr Balance c /d $4,771 Cr : Account Receivable $1,929, cash $2,842, Total Dr $4,771, Cr $4,771

Unearned Revenue Account

Balance c/d $711, Cr cash $711, Total Dr $711,Cr $711

(3) The trial balance as on 30/04/2017

Dr: Cash $19,613, salary payable $381, supplies $1,320, Account Receivable $1,929, salary expense $1,524 Total $24,767

Cr : Common Stock $18,270, Account Payable $1,015, service revenue $4,771, unearned revenue $711 Total $24,767

6 0

3 years ago