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2 years ago

Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.

Business

1 answer:

Rashid [163]2 years ago

5 0

Answer: See explanation

Explanation:

a. The issuance of bonds on December 31, 2018.

Dec 31, 2018.

Debit Cash $99880

Debit Discount on bonds payable $6120

Credit Bonds payable $106000

(to record bond issue)

b. The first through fourth interest payments on each June 30 and December 31.

June 30

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

(To record interest)

Dec, 31.

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

(To record interest)

June 30

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

(To record interest)

Dec, 31

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

(To record interest)

c. The maturity of the bonds on December 31, 2020.

Dec 31,2020

Debit Bonds payable = $106000

Credit Cash = $106000

(To record retirement)

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Answer:

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2 years ago

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In response to a shortage caused by the imposition of a binding price ceiling on a market,

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2 years ago

Clannad currently produces and sells 4,000 units per year, and has a capacity of 5,000 units. Enya, Inc. has offered a one-year

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Answer: Increase of $20,000

Explanation:

The cost of making a unit is:

= Direct material + Direct labor + Variable overhead + Fixed overhead

= 10 + 14 + 5 + 3

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= 4,000 * 32

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= $126,000

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3 years ago

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Answer:

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2 years ago

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