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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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Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021, with a performanc
Mandarinka [93]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, computation of the given data are as follows:

As probability is not correctly given.

Let probability be:

July 31, 2021 = 65%

August 7, 2021 = 25%

August 14, 2021 = 5%

August 21, 2021 = 5%

So, We can calculate the transaction price by using following formula:

Transaction price = (Amount + Bonus) × Probability

July 31, 2018 =  ($950,000 + $50,000) × 65% = $650,000

August 7, 2018 = ($950,000 + $40,000) × 25% = $247,500

August 14, 2018 = ($950,000 + $30,000) × 5% = $49,000

August 21, 2018 = ($950,000 + $20,000) × 5% = $48,500

So, Total transaction price = $650,000 + $247,500 + $49,000 + $48,500

= $995,000

5 0
3 years ago
The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your e
Aleks [24]

Answer:

10% of exam score

Explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised)  while making a choice.

Example : If a person has option to have an apple or an orange, & choses to have apple. The opportunity cost of having an apple is the sacrifised orange.

Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.

4 0
3 years ago
On January 1, 2021, Algerian Delivery had 100,000 shares of common stock outstanding. The following transactions occurred during
defon

Answer:

Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01

Explanation:

In order to calculate Algerian Delivery's basic earnings per share for the year ended December 31, 2021 we would have to make first the following calculations:

Net Income = $298,750

Calculation of Weighted Average of Number of Equity Shares:

Outstanding on Jan 1 = 100,000*12/12 = 100,000

Less: Treasury Stock 3,100*10/12 = (2,583)

Sold Treasury Shares 3,100*3/12 = 775

New Shares Sold 12100*1/12 = 1,008

Therefore, Weighted Average of Equity Shares during the year = 100,000  - 2,583 + 775 + 1,008 =99,200

Therefore, Basic Earnings per Share = Net Income/Weighted Average of Equity Shares outstanding during the year

= $298,750/99,200 = $3.01

Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01

6 0
3 years ago
At Lequals86​, Kequals90​, the marginal product of labor is 8 and the marginal product of capital is 2. What is the marginal rat
Sidana [21]

Answer:

0.25

Explanation:

The marginal rate of technical substitution (MRTS) can be described as the rate of a reduction is one factor to maintain the same production level when another factor is increased.

Given that labor is measured on the horizontal axis, the MRST of K for L can be calculated as follows:

MRST_{KL} = \frac{MP_{K} }{MP_{L} }

Where;

MPK =  Marginal product of capital = 2

MPL = Marginal product of labor = 8

Substituting the values into the equation, we have:

MRST_{KL} = \frac{2}{8} =\frac{1}{4} = 0.25

This implies that 0.25 of capital must be given up to have one unit of labor.

3 0
3 years ago
Mofro's Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year,
JulsSmile [24]

Answer:

$200,000

Explanation:

As we know that

The net income is the income that is generated when we deduct all expenses incurred from all revenues generated that is reflected on the income statement  

In mathematically,  

Net income = Revenues earned - expenses incurred

                   = $450,000 - $250,000

                   = $200,000

3 0
3 years ago
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