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tigry1 [53]
3 years ago
11

On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3,755,000. The market rate of interest for these bonds is 10%. Int

erest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report unamortized bond discount of
Business
1 answer:
Zarrin [17]3 years ago
4 0

Answer:

$229,500

Explanation:

Calculation for unamortized bond discount to be reported

First step is to calculate the bonds amount

Bond s=($3,755,000 × .10) - ($4,000,000 × .09)

Bonds=$375,500-$360,000

Bondsman = $15,500

Last step is to calculate the unamortized bond discount

Unamortized bond discount=($4,000,000 - $3,755,000) - $15,500

Unamortized bond discount=$245,000-$15,500

Unamortized bond discount= $229,500

Therefore Patterson should report unamortized bond discount of $229,500

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An electronic exchange is an electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market i
Natalija [7]

Answer:

False

Explanation:

Buyers and Sellers do not physically see each other

7 0
3 years ago
During your meeting with your client, Hayden Doyle, you recommended he purchase a personal liability umbrella policy (PLUP). Whi
nataly862011 [7]

Answer:

b. Develop and present financial planning recommendations.

Explanation:

Since in the question it is mentioned that there is a recommendation for buying a personal liability with respect to the umbrella policy so in the steps of the financial planning process, the step that should be considered is to develop & present the recommendation with regard to the financial planning as the financial planning is important than can save your future

hence, the correct option is B.

6 0
3 years ago
During a business cycle expansion, total production ________ and total employment ______
kicyunya [14]

During a business cycle expansion, total production increases and total employment increases.

<h3>What does "business cycle" mean?</h3>
  • Business cycles are a sort of variation that may be observed in the overall economic activity of a country.
  • A business cycle is made up of expansions that occur roughly at the same time in many different economic activities, followed by contractions that are similarly widespread (recessions).
  • This series of modifications is periodic but not recurring. Economic activity goes through periods of boom and then contraction during business cycles.
  • Both the general welfare of society and the welfare of private entities are affected by these developments.

To learn more about business cycles, refer to the following link:

brainly.com/question/26086110

#SPJ4

7 0
2 years ago
Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on
Andrej [43]

Answer:

C) Operating, $12,000; financing $6,000.

Explanation:

Interests expenses do no change the notes payable or bond, but results in the reduction of the cash flow of a company. Therefore, the interests paid on both short terms notes payable and interest on long-term bonds will appear under the operating activities section of the cash flow statement.

Dividend appears under the financing activities section of the cash flow statement.

For this question, we therefore have:

Cash outflows from operating activities = Interest on short-term notes payable + Interest on long-term bonds = $2,000 + $10,000 = $12,000

Cash outflows from financing activities = Dividends on common stock = $6,000

Therefore, the correct option is C) Operating, $12,000; financing $6,000.

4 0
3 years ago
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 12200 gallons of direct materials that a
natali 33 [55]

Answer:

$7,200 favorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $4 per gallon × (2 gallons × 7,000 units - 12,200 gallons)

= $4 per gallon × (14,000 - 12,200 gallons)

= $4 per gallon × 1,800 gallons

= $7,200 favorable

All other information which is given is not relevant. Hence, ignored it

4 0
4 years ago
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