Answer:
b. credit to Cash $60,000.
Explanation:
Given that:
Hurley Corporation issues the principal amount of $500,000
Time = 5 years
Rate = 12% at 96 with interest payable on January 1
Discount on issue =500000 × (1 - 0.96) = 20000
Annual discount amortization= 20000/5 = 4000
Interest payable = 500000× 12% = 60000
From the information given in the question; we can have a journal entry to determine the what the straight-line method will include.
So, let have a look at the table below:
Discount on issue 20000
Annual discount 4000
amortization
Debit Credit
Interest expense 64000
Discount on Bonds payable 4000
Interest payable 60000
Now; The January 1 entries will now be as follows:
Debit Credit
Interest payable 60,000
Cash 60,000
Thus; The entry on January 1 to record payment of bond interest assuming amortization of bond discount used the straight-line method will include a: <u>Credit to cash $60,000</u>
The correct answer to the question is, Labor.
Hope that help. ♥♥♥
W. L. Gore has nearly 10,000 employees and more than $3 billion in annual revenues, but, as noted earlier, uses an extremely organic organizational structure. Employees have no bosses, participate on teams, and often create roles for themselves to fill functional gaps within the company.
Answer:
The correct answer that fills the gap is <em>d. before.</em>
Explanation:
Everything that happens in the business must be registered in the accounting system, so that the newspaper and the major contain a complete history of all the commercial operations of the period. If an operation or transaction has not been registered, account balances will not show the correct figure at the end of the accounting period.
The seats with which the accounts are adjusted or updated are called adjustment seats. If the adjustment does not affect an income or expense account, it is not an adjustment entry.
The income can be earned (accrued) before the cash is received from the client, or from accounting for the transaction in the accounting records. These are revenues that have been earned but the corresponding cash has not yet been collected.
The adjustments made to the income accounts are necessary to ensure that all income earned in the period has been recorded in the accounting. In order for the net profit to be expressed correctly in the income statement. There are two types of income adjustment:
- Cumulative income not collected.
- Customer advances.
Answer:
$38.81
Explanation:
The value of the stock is the present value of its future divided payments, bearing in mind that the first dividend is payable six years from,hence, the present value of dividend in year 5( a year before its payment) is then computed thus:
PV of dividend at the end of year 5=expected dividend/discount rate-growth rate
expected dividend in year 6=$5
discount rate=10%
growth rate=2%
PV of dividend at the end of year 5=$5/(10%-2%)
PV of dividend at the end of year 5=$62.50
We need to discount the PV backward by 5 years to show the stock value today
the current stock price=$62.50/(1+10%)^5
the current stock price= $38.81
