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Mrrafil [7]
3 years ago
6

On January 1, Novak Corp. issued $3600000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $3859546.

The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for
Business
1 answer:
Juliette [100K]3 years ago
6 0

Answer:

the debit entry to Interest Expense is $463,145.52

Explanation:

The computation of the debit entry to Interest Expense is given below:

= Bonds carrying value × Market rate of interest

= $3,859,546 × 12%

= $463,145.52

Hence, the debit entry to Interest Expense is $463,145.52

We simply applied the above formula and the same is to be considered

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The longdashrun supply curve in a perfectly competitive market states that​ _____. A. the longdashrun quantity remains the same
Leokris [45]

Answer: Option C

           

Explanation: Perfect competition refers to a market structure under which there are large number of buyers and sellers each operating at a small level.

In such a market structure the supply curve is a horizontal line that depicts that whatever the quantity is the price will remain the same, that is,  at the equilibrium level.

This happens due to the fact that there are large of number of participants present and no individual have the power to affect the price.

Thus, the correct option is C.

5 0
3 years ago
Journalize the entries for the following transactions
Zanzabum

Answer and Explanation:

The journal entry is shown below:

a. Cash $116,300  

       To  Sales $116,300

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $72,000  

     To Merchandise Inventory $72,000

(Being the cost of the merchandise is recorded)

b. Accounts Receivable $755,000  

    To  Sales $755,000

(Being the merchandise is sold on account is recorded)

Cost of Merchandise Sold $400,000  

         To Merchandise Inventory $400,000

(being the cost of the merchandise is recorded)

c. Cash $1,950,000  

      To Sales $1,950,000

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $1,250,000  

    To Merchandise Inventory $1,250,000

(Being the cost of the merchandise is recorded)

d. Cash $330,000  

     Sales  $330,000

(Being the merchandise is sold for cash is recorded)

Cost of Merchandise Sold $230,000  

       To Merchandise Inventory $230,000

(Being the cost of the merchandise is recorded)

e. Credit Card Expense $81,500  

        To Cash  $81,500

(Being cash paid is recorded)

4 0
3 years ago
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 12% coupon, semiannua
Leona [35]

Answer:

10.77%

Explanation:

FV: $1000

PV: $845.87

PMT: $60

Nper: 40 = (25 years - 5 years ago)* 2 for semi-annual payment

We use excel to calculate semi-annual discount rate by formula Rate(Nper,PMT,-PV,FV)

= rate(40,$60,-$845.87,$1000) = 7.18%

⇒ annual rate = semi-annual rate * 2 = 7.18% * 2 = 14.36%

after-tax cost of debt = 14.36% * (1 - 25%) = 10.77%

<em>Please see excel attached for the calculation</em>

Download xlsx
6 0
3 years ago
CARLIN: Has been renting a two-bedroom apartment with her husband and 3 kids; wants to move into a three-bedroom home instead To
SOVA2 [1]

Answer:

i have no idea

Explanation:

6 0
3 years ago
A multiconcept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces cos
krek1111 [17]

Answer: The Multiconcept restaurant is beneficial to both restaurant chains

Explanation:

If they share resources then they are saving 30% in fixed costs even though they are losing 20% in sales.

If the losses in sales are subtracted from the savings in fixed costs, it means that both Taco Bell and KFC are benefitting by 10%.

This shows that the decision to open a shared facility versus two separate facilities is beneficial to both restaurants on a net benefits basis as the savings in fixed costs from sharing facilities outweighs the losses in sales probably resulting from not offering a full menu.

8 0
3 years ago
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