1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mash [69]
2 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]2 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.

You might be interested in
Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt
Andreyy89

Answer:

19.64%

Explanation:

The return on equity shall be determined through following mentioned formula:

Return on equity=Net profit/Equity

In the given question

Net profit=9.68%*$807,200=$78,136.96

Equity=Assets-Total Debt

          =$1,105,100-64%($1,105,100)

          =$397,836

Return on Equity=$78,136.96/$397,836

                           =19.64%

3 0
3 years ago
Justin is taking a class in which he is working on his future career goals. His teacher asked him to write an essay answering qu
morpeh [17]

Answer:

answer b

Explanation:

8 0
2 years ago
Read 2 more answers
Frictional unemployment is:
frozen [14]

Answer:

D.unemployment that is due to normal turnover in the labor market.

Explanation:

Frictional unemployment occurs as as result of normal movement of workers in an economy due to changing of jobs. It is also called transitional employment.

This type of employment can occur even when there is full employment in the economy and people want to move from one job to the other.

Frictional unemployment could be due to quitting, termination, seasonal employment, or term employment.

4 0
3 years ago
PLEASE HELP GUYS WRITE A TOPIC WITH AT LEAST 200 TO 300 WORDS ABOUT DOGS RESEACH AND RESTATE IT IN YOU OWN WORDS PLEASE I WILL G
melomori [17]

Answer:

Did you know that dogs' noses are wet. Probably because of the fact that they drink water by licking and it may get on their nose or it's just wet. Dogs have feelings just like us humans do. They feel when something is wrong. They know when you happy and sad. Dog's are smart and listen very well if you train them. Dogs tend to lick us because that's their way of showing love. You know how us people just say I love you and show it well, since dogs can't talk they lick us and play around with us. Dogs also tend to stare at us which sometimes can be creepy but that's another way they show affection. Now if they don't know you then they will stare and bark because they need to absorb you and try to make sure you want to hurt their owner. Lastly, dogs can get jealous because they might see you with another do and think you're replacing them or they might see you with a baby and get jealous because they might feel not loved or cared for anymore so they expect all the love from you because they are attached and spoiled. Overall, dogs are loving and caring for little pets.

8 0
3 years ago
Read 2 more answers
Which of the following is true for American options? A. Put-call parity provides an upper and a lower bound for the difference b
velikii [3]

The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices

Explanation:

According to the Put-call parity concept when we hold the  short European put and long European call of similar class the return delivered is same as  holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option

In financial management  put–call parity concept is used to define the  relationship that exist  between the price of a European call option and European put option, and both of them have identical strike price and expiry

The formula used for calculating  put call parity is

c + k = f +p

where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)

4 0
3 years ago
Other questions:
  • A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is
    10·1 answer
  • Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expe
    11·1 answer
  • Business cycles ___________.
    7·1 answer
  • A commodity is something with cash value that can be bought or sold.<br> true or false
    7·2 answers
  • The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of deposits.
    12·1 answer
  • What condition exists if you have a monthy soending deficit?
    15·1 answer
  • Karla bought her dress for the recital not because she liked the color and style, but because it made her feel good about hersel
    5·1 answer
  • what challenges might people living in a county or state with a high concentration of subprime scores be facing as a result of t
    9·1 answer
  • Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes
    13·1 answer
  • Based on peter drucker's list of common practices of successful managers, should isabel mcdonald get the newly created executive
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!