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elixir [45]
3 years ago
10

Jones Company issued $500,000 of 5%, 10-year bonds payable at a price of 92. The market interest rate on the date of issuance wa

s 6%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective interest amortization method is:
Business
1 answer:
Daniel [21]3 years ago
5 0

Answer:

Date                     Account Title                                       Debit              Credit

XX-XX-XXXX       Interest expense                               $13,800

                            Discount on bond payable                                        $1,300

                            Cash                                                                           $12,500

Working      

The bonds were issued at a price of 92 which means they were issued at:

= 500,000 * 96/100

= $460,000

Interest expense

= Issue price * interest rate * 6/12 months

= 460,000 * 6% * 6/12

= $13,800

Cash:

= Bond price * coupon rate * 6/12

= 500,000 * 5% * 6/12

= $12,500

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Diego transfers real estate with an adjusted basis of $648,400 and fair market value of $907,760 to a newly formed corporation i
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Answer:

123,196

Explanation:

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3 years ago
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Answer:

Correct option is B

more in supplier development for A items.

Explanation:

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6 0
3 years ago
A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external c
Maslowich

Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development

Explanation:

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7 0
3 years ago
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LekaFEV [45]

Answer:

Bill is probably a(n)

SBU manager.

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