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nadya68 [22]
3 years ago
12

On January 1, Greene Inc. issued $5,000,000, 9% bonds for $4,685,000. The market rate of interest for these bonds is 10%. Intere

st is payable annually on December 31. Greene uses the effective-interest method of amortizing bond discount. At the end of the first year, Greene should report unamortized bond discount of:_____.
a. $274,500.b. $285,500.c. $258,050.d. $255,000.
Business
1 answer:
skad [1K]3 years ago
5 0

Answer:

b.$296,500.

Explanation:

Calculation to determine what Greene should report as unamortized bond discount

First step is to calculate the discount amount

Discount Amount= ($5,000,000 × .09) - ($4,685,000 × .10)

Discount Amount= $18,500

Now let determine the unamortized bond discount

Unamortized bond discount=$315,000 - $18,500 Unamortized bond discount= $296,500

Therefore Greene should report unamortized bond discount of $296,500

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Answer:

$13,335

Explanation:

Required production in units for April and May are 6,500 units and 6,200 units respectively.

Direct labor hours needed is 0.15 for both months.

Total direct labor hours needed for each month would be;

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Therefore, total direct labor cost for both months April and May would be;

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= $13,335

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