1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
likoan [24]
3 years ago
14

On January​ 1, 2019, Castle Services issued $ 174 comma 000 of sixminus ​year, 12 ​% bonds when the market interest rate was 11

​%. The bonds were issued for $ 180 comma 000 . Castle uses the effectiveminus interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. Write down the correct journal entry to record the first interest​ payment? (Round your answers to the nearest dollar​ number.)
Business
1 answer:
Marysya12 [62]3 years ago
8 0

Answer: Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

Explanation:

First and foremost, the cash payment will be calculated as:

= $174,000 × 12% × 6/12

= $174,000 × 0.12 × 0.5

= $10440

Interest expenses will be calculated as:

= $180000 × 11% × 6/12

= $180000 × 0.11 × 0.5

= $9900

Therefore, the journal entry to record the first interest​ payment would be:

Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

You might be interested in
How much is one bottle of water? Case of 20 water bottles for $15.00
Mariulka [41]

75 cents because $15 divided by 20 = 75 cents

6 0
3 years ago
Read 2 more answers
Charmingbells inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down bec
Elena L [17]
The situation best outlines Competitive Failure. In financial aspects, advertise disappointment is a circumstance in which the portion of products and ventures isn't proficient. That is, there exists another possible result where no less than one individual might be improved off without exacerbating another person off.
6 0
3 years ago
Read 2 more answers
Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who
Temka [501]

Answer: return on investment

Explanation:

The return on investment is a ratio that exists between the net profit and the cost of that particular investment. It should be noted that a high return on investment simply means that the profit of the investment compare favourably to the cost incurred for that investment.

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of return of investment.

8 0
3 years ago
The crusades, fought on the basis of religion occurred in the continent of
vladimir2022 [97]
Asia the crusades fought holy wars
3 0
3 years ago
The following schedule shows the technology of production at Mahalo Macadamia Nut Farm for​ 2015: Workers Total Pounds of Macada
faltersainse [42]

Answer:

MRPL= $200 = wage rate when there are 5 workers

and MRPL = $1,200 = wage rate when there are 2 workers.

Explanation:

The computation of unionized is shown below:-

Marginal revenue product of labor = Marginal product × Price per unit

Workers   Total Production    Marginal Product     MRPL

                   (per day)

a                    b                        b × $8

0                   0

1                   200                         200                      $1,600

2                   350                          150                      $1,200

                                               (350 - 200)

3                   450                           100                    $800

                                               (450 - 350)

4                   500                          50                        $40

                                               (500 - 450)

5                   525                           25                       $200

                                               (525 - 500)

6                    510                         -15                        -$120

                                               (510 - 525)

From the above table MRPL = $200 = wage rate when there are 5 workers

and MRPL = $1,200 = wage rate when there are 2 workers.

4 0
3 years ago
Other questions:
  • One way to avoid _______ is to choose a large enough sample size.
    5·1 answer
  • An organization with a(n) ___ culture is characterized by employees not becoming friends and having a high degree of autonomy an
    12·1 answer
  • A pet shop owner had a parrot with a sign on its cage that said "Parrot repeats everything it hears". Davey bought the parrot an
    12·1 answer
  • What is the fourth part to property rights?
    10·1 answer
  • When the interest rate increases, the opportunity cost of holding money Select one: a. decreases, so the quantity of money deman
    15·2 answers
  • Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift tax results. If Angela subsequen
    6·1 answer
  • Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Du
    6·1 answer
  • Why should a researcher check that their information is valid?
    6·1 answer
  • At the beginning of the year, The Mann Corporation, a private entity, decided to go public.
    8·1 answer
  • If an entrepreneur receives $275,000 from venture capitalists in exchange for stock, what do the investors receive in return?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!