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mash [69]
3 years ago
9

On January 1, 2019, Tonika Company issued a four-year, $10,700, 7% bond. The interest is payable annually each December 31. The

issue price was $10,018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense?
A. Interest expense 1,052
Bond discount 205
Cash 847
B. Interest expense 847
Cash 847
C. Interest expense 805
Bond discount 42
Cash 847
Business
1 answer:
Marianna [84]3 years ago
7 0

Answer:

C. Interest Expense 805

Bond discount 42

Cash 847

Explanation:

The interest expense is calculated based on effective interest rate. The issue price is 10,018 which is the actual price and with effective interest rate interest amount is determined. The interest expense has cash value and bond discount.

10,018 * 8% = 804.45 approximately 805.

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Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common sto
nikklg [1K]

Answer:

The appropriate solution is "$130,000".

Explanation:

The given values are:

No. of common shares outstanding

= 50,000

Dividend per share

= $1.80

No. of preferred shares outstanding

= 8,000

Dividend per share

= $5

Now,

The total dividend on common shares will be:

=  No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share

On substituting the values, we get

=  50,000\times  1.80

=  90,000 ($)

The total dividend on preferred stock will be:

=  No. \  of \ preferred \ shares \ outstanding\times Divided \ per \ share

On substituting the values, we get

=  8,000\times 5

=  40,000 ($)

Hence,

The total dividend paid by company will be:

=  Total \ dividend \ on \ common \ shares +Total \ dividend  \ on \  preferred \ stock

=  90,000+40,000

=  130,000 ($)

Thus the above is the correct answer.

4 0
2 years ago
As a customer acquisition technique, events: a. Are considered mostly ineffective compared to mobile advertising or social media
KonstantinChe [14]

Answer: a. Are considered mostly ineffective compared to mobile advertising or social media promotions.

Explanation:

Customer acquisition techniques refers to the strategies that are helps in the identification of the potential leads which are then converted into active customers. Such techniques include personalized offer design, automated email marketing etc.

As a customer acquisition technique, events are considered mostly ineffective compared to mobile advertising or social media promotions.

8 0
3 years ago
In what way is the mississippi college savings account program helping to bridge the economic divide?
3241004551 [841]

Answer:

The mississippi college savings account program helps children save for more expensive schools by starting a savings account at a very young age.

The Mississippi College Savings Account Plan is helping bridge the economic drive by allowing the students to become familiar with the banking service, getting them used to the banking system and saving accounts.

4 0
3 years ago
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al
IgorC [24]

Answer:

a= 75%

b= 1702

c= 94% , 4334

8 0
2 years ago
Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing depar
Svetllana [295]

Answer:

Ice Cream Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to: __________

=  $17.97.

Explanation:

a) Data and Calculations:

                                                                Units    Materials   Conversion

Beginning work in process inventory     900     $13,000        $5,100

Degree of completion                                               75%              20%

 Units started into production              9,600

Total units in production                    10,500

Units completed and transferred       8,500         100%            100%

Ending work in process inventory     2,000           90%              30%

                                                                Units    Materials   Conversion

Beginning work in process inventory     900     $13,000         $5,100

Costs added during the month                         $172,100      $242,100

Total production costs for the month               $185,100    $247,200

Equivalent units of production:

                                                             Units    Materials           Conversion

Units completed and transferred       8,500    8,500 (100%)   8,500 (100%)

Ending work in process inventory     2,000     1,800 (90%)        600 (30%)

Total equivalent units                                      10,300                9,100

Cost per equivalent unit:

                                                           Materials           Conversion

Total production costs                      $185,100           $247,200

Total equivalent units                           10,300                  9,100

Cost per equivalent unit                       $17.97                $27.16

6 0
2 years ago
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