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]
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.

You might be interested in
A car parts company decides to discontinue the production of its lowest-selling products and instead focuses on its areas of exp
Ludmilka [50]

Answer:

A) Core Competency

Explanation:

Core Competency

Core competency refers to an organisation's strategic advantage over its competitors, it means the capabilities and the resources that a business must find, cultivate and explore in order to have an advantage over its competitors in the same line of business.

In order for an activity to be defined as a business' core competence, that activity must be unique, making it difficult for others to re-produce an it must also produce a unique level of benefit or value for the consumers of the product.

Since the car parts company has innovated a new automobile product with unique value, <u>It has cultivated and explored its core competency </u>

7 0
3 years ago
Read 2 more answers
Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.
OverLord2011 [107]

Answer:

Present Value= $15,874.25

Explanation:

Giving the following information:

Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?

<u>This is a rare case where the interest rate is negative:</u>

Interest rate= 0.03 - 0.06= -0.03

Having said this, the present value is higher than the final value:

PV= FV/ (1+i)^n

PV= 14,488/ 0.97^3= $15,874.25

6 0
4 years ago
HELP!!!
Amanda [17]

Answer:

5-6%

Explanation:

I took the test

3 0
3 years ago
Read 2 more answers
The fiscal 2016 financial statements of Nike Inc. shows net operating profit margin (NOPM) of 11.4%, net operating asset turnove
Solnce55 [7]

Answer:

-13.562%

Explanation:

Data provided in the question:

Net operating profit margin (NOPM) = 11.4%

Net operating asset turnover (NOAT) = 3.83

Return on equity = 30.1%

Adjusted return on assets = 17.1%

Now,

Return on equity = Nonoperating Return + Return in net operating assets

or

Nonoperating Return = Return on equity - Return in net operating assets

Also,

Return in net operating assets = NOAT × NOPM

or

= 3.83 × 11.4%

= 43.66%

therefore,

Nonoperating Return = 30.1% - 43.66%

= 30.1% - 43.662%

= -13.562%

5 0
3 years ago
An economic system in which the government makes all decisions about how goods and services are produced and distributed is call
Savatey [412]
The closest answer to all the choices would be communism. communism's principle revolves around everyone having equal of everything. this means that the government will decide how each good and each service is produced and given to people. 
5 0
3 years ago
Other questions:
  • Key Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for th
    5·1 answer
  • Which is NOT a crucial question about target markets? Select one:
    9·1 answer
  • Predetermined Overhead Rate; Various Cost Drivers
    14·1 answer
  • Giselle used the table to predict the cost of one year of college.
    12·2 answers
  • Apex question: What type of information is best suited for infographics?
    15·2 answers
  • Do you think pricing for Super Bowl advertising is fair?
    11·2 answers
  • All of the following are true regarding traditional manufacturing except a.traditional manufacturing practices tolerate defects.
    11·1 answer
  • Haberdashery Company has a beginning Work-in-Process Inventory of 25,000 units (40% complete). During the period, 110,000 units
    10·1 answer
  • Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The compan
    9·1 answer
  • The increased use of the Internet presents a lot of potential for which types of businesses?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!