Answer:
The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.
Explanation:
This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.
The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.
So, the appropriate journals to record this transaction is as provided above.
<span>This is the gestalt law of closure. Gestalt means a whole comprised from many pieces that takes on a meaning larger than itself. This refers to Lilian's process of assembling the word- it is composed from letters, but takes on an independent meaning. The law of closure is when this happens anyway even when we don't have all the information.</span>
Answer:
- cost of goods sold
- raw materials inventory
- work in process inventory
- finished goods inventory
Explanation:
solution
As manufacturing industry always keep the track of costs of each inventory as product is moving from the raw material inventory in to the work in process and by the work in process it goes into the the finished goods inventory
so order of the flow of goods from beginning to end is
- cost of good sold
- raw material inventory : it is the total cost of material that is use in production process
- work in process inventory : work in process inventory is continually update work cost is record
- finished good inventory : after each job work complete then product is transfer to finished goods inventory
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
