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
Fittoniya [83]
3 years ago
14

On January 1, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on January 1. The entry on Janua

ry 1 to record payment of bond interest assuming amortization of bond discount used the straight-line method will include a:_______.a. credit to Discount on Bonds Payable $4,000. b. credit to Cash $60,000. c. debit to Interest Expense $60,000. d. debit to Interest Expense $30,000.
Business
1 answer:
KonstantinChe [14]3 years ago
3 0

Answer:

b. credit to Cash $60,000.

Explanation:

Given that:

Hurley Corporation issues the principal amount of $500,000

Time = 5 years

Rate = 12%  at 96  with interest payable on January 1

Discount on issue  =500000 × (1 - 0.96) = 20000

Annual discount  amortization= 20000/5 = 4000                  

Interest payable  = 500000× 12% =  60000

From the information given in the question; we can have a journal entry to determine the what the straight-line method will include.

So, let have a look at the table below:

Discount on issue                     20000                                      

Annual discount                        4000

amortization

                                                     Debit                            Credit

Interest expense                         64000

Discount on Bonds payable                                            4000

Interest payable                                                               60000

Now; The January 1 entries will now be as follows:

                                                    Debit                        Credit

Interest payable                           60,000

Cash                                                                                60,000

Thus; The entry on January 1 to record payment of bond interest assuming amortization of bond discount used the straight-line method will include a: <u>Credit to cash  $60,000</u>

You might be interested in
If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then _____.
Mice21 [21]

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then the government should make the price equal to the marginal cost.

Monopolies are businesses that are dominated by few people in the industry. They have little competition from others and have high barriers to entry.

They can sometimes reduce production to increase the price of their goods and services.

The government can regulate the activities of monopolies by making their price equal to the marginal cost.

Learn more about monopolies here:

brainly.com/question/13113415

8 0
2 years ago
A(n) _____ typically addresses contributions to government officials and political parties, customer and supplier relations, con
tekilochka [14]

Answer: Code of ethics

Explanation:

The code of ethics is one of the principle in an organization that helps in guiding the various types of core values and the standards of the firm for making the various types of decisions.

The main purpose of the code of ethics is that it helps in providing the various types of ethical guideline to the members of a organization for providing the various types of core values. It is one of the type of document that helps in outline the main mission and also the core values of an organization.  

 According to the given question, the code of ethics is typically addressing the contribution to the various types of government officials, record the customers and the supplier relations accurately.

 Therefore, Code of ethics is the correct answer.            

3 0
3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $70,000 and $3,600, r
tatyana61 [14]

Answer:

Uncollectible account expense  $8,600

Explanation:

The computation of the amount as the Uncollectible Accounts Expense on its Year 2 income statement is given below:

Allowance account - Beg year 2    $3,600 Credit

Written off account   $6,600    Debited by

 Unadjusted balance in Allowance account  $3000  Debit

Adjusted balance required in Allowance account  $5,600  Credit

Uncollectible account expense  $8,600

6 0
3 years ago
Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store
Alex787 [66]

The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.

Explanation:

The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.

In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.      

8 0
3 years ago
Using tools, operating vehicles, and repairing equipment all involve working with _____.
Akimi4 [234]

Answer:

things.

Explanation:

Using tools, operating vehicles, and repairing equipment all involve working with things.

8 0
2 years ago
Read 2 more answers
Other questions:
  • Yvonne authorizes Warren to act as her agent and sell her vehicle. Yvonne tells Warren her vehicle has never been in an accident
    10·1 answer
  • Women are severely underrepresented at the top of u.s. corporations. less than _____ percent of the executive jobs at fortune 50
    7·1 answer
  • Angola United Theaters, Inc. is considering opening a new movie theater in Angola, Indiana. The relevant cost of capital is 8%.
    10·1 answer
  • Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. this reflects a change
    10·1 answer
  • Today, if John’s computer stops operating correctly, he probably calls a computer repair technician to fix it. The computer repa
    12·2 answers
  • A zoo has a circular pool for its seals. The diameter of the pool is 32 feet. How much fence is needed to enclose the pool?
    6·1 answer
  • The measurement of earnings concept that consists of a company’s profit from operations after taxed are subtracted is ________.
    12·1 answer
  • During the taking of its physical inventory on December 31,2008, Genesis company incorrectly counted its inventory as $126,000 i
    9·1 answer
  • Buyers and sellers negotiate prices for goods and services through supply and demand in a(n) ________ economy.
    8·1 answer
  • a bank lender is concerned about the creditworthiness of one of its major borrowers. the bank is considering using a swap to red
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!