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professor190 [17]
3 years ago
12

Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 [The following information applies to the que

stions displayed below.] Claire Corporation is planning to issue bonds with a face value of $120,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)1: 1. Provide the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)3. What bonds payable amount will Claire report on this year’s December 31 balance sheet? (Round your final answers to nearest whole dollar amount.)
Business
1 answer:
Nitella [24]3 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 5
Sonbull [250]

Answer:

Turner, Roth, and Lowe

a. Loss from selling the assets = $78,800

b. Loss allocation to the partners:

                                                            Turner      Roth      Lowe

Loss sharing ($78,800)                      $7,880    $31,520   $39,400

c. Capital contribution to cover deficiency:

                                                            Turner      Roth      Lowe

Contribution to cover deficiency     $3,000    $12,000    $15,000

Explanation:

a) Data and Calculations:

                                                            Turner      Roth      Lowe

Income and loss sharing ratio:               1                4             5

Assets before liquidation = $130,800

Liabilities = $82,000  

Capital balances                                 $2,900   $14,200   $31,700

Cash received from sale of assets = $52,000 ($82,000 - $30,000)

Loss from sale of assets = $78,800 ($130,800 - $52,000)

Loss sharing ($78,800)                      $7,880    $31,520   $39,400

Contribution to cover deficiency       $3,000      $12,000   $15,000

5 0
2 years ago
The management at Granger Industries is evaluating their distribution system to determine if cost-cutting measures will impact p
tekilochka [14]

Ralph is trying to avoid sub optimization.

<u>Explanation:</u>

Sub optimization is a process which means that making changes to only one component of the whole process. In this process, the other components involved are not paid any attention to and are ignored.

Ralph is also wanting to avoid this and wants to consider the synergies  between the elements instead of paying attention to one element. This will help to solve the problem at an effective level and improve the overall performance.

8 0
3 years ago
The market for tennis shoes is in equilibrium. If the government increases business taxes, then we would expect to see a(n) incr
Alinara [238K]

Answer:

The market for tennis shoes is in equilibrium. If the government increases business taxes, then we would expect to see a decrease in supply.

Explanation:

When a market is in equilibrium, a situation occurs in which the quantity demanded and the quantity supplied are the same, with which there is neither a surplus nor a shortage in supply and demand.

Now, in the event of an increase in taxes that would increase the cost of production and the final price of the product, the quantity supplied will tend to decrease, since a smaller quantity of products will be produced for the same amount. Likewise, the final price will tend to rise, with which demand will also fall, finding a new equilibrium point.

6 0
3 years ago
Name one alternate option to establish credit if you are unable to get a credit card.
Alinara [238K]

Answer:

Explanation:

Its letstute.

Hopes it help you thanks

6 0
3 years ago
Ctual total factory overhead incurred $ 28,175 Standard factory overhead: Variable overhead $ 3.10 per unit produced Fixed overh
Mariulka [41]

Answer:

Total controllable overhead variance                             $                                                                                  

Standard total overhead cost ($4.10 x 9.800 units) = 40,180

Less: Actual total overhead incurred                        =  <u>28.175</u>

Total controllable overhead cost                               <u>12,005</u>(F)

Standard total overhead cost per unit = $3.10 + $1.00 = $4.10                                                                                                                                  

Explanation:

Total controllable overhead variance is the difference between         standard total overhead cost and actual total overhead incurred. The standard total overhead cost is the product of standard total overhead cost per unit and actual units produced.

3 0
3 years ago
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