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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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Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Lei
g100num [7]

Answer:

d. $119.32

Explanation:

The computation of the total of leiff online purchase is shown below:

= Video game price - discount + sales tax + shipping fee

where,

Video game price is $128

The discount = Video game price × discount percentage

= $128 ×15%

= $19.2

The sales tax =  (Video game price - discount) × sales tax rate

= ($128 - $19.2) ×5.3%

= $5.77

And, the shipping fee is $4.75

Now put these values to the above formula  

So, the value would equal to

= $128 - $19.2 + $5.77 + $4.75

= $119.32

6 0
3 years ago
A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has average revenue of $9 and av
german

Answer:

It breaks down on two parts to be fully explained.

Explanation:

Part 1

The correct answer is:

The D option (All of the above are correct) which applies perfectly in the firms of competitive markets.  

Part 2

Referred to Table 2.

For this firm, the average revenue from selling 3 units is A) $12. B) $4. C) $3. D) $1.

Table 2

The reference to table 2 represents a demand curve faced by a firm in a competitive market.

Price Quantity

$4         0

$4         1

$4         2

$4         3

$4         4

$4         5

The correct answer is:

The B option ($ 4)  which it would represent the overall average revenue from selling 3 units.

7 0
3 years ago
A newspaper article once reported that the u.s. economy was experiencing a low rate of inflation. it said that "low inflation ha
noname [10]
I think policymakers would link social security payments to inflation to help the recipients with the increased cost of living due to inflation of prices also. I don't think small increases due to a low rate of inflation is a downside because the low rate of inflation means goods and services will not increase much in price so will still be relatively affordable. 
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3 years ago
The name group of explorers that Louiseana purcha
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It was called the “ Lewis and Clark Expedition” or “ The Crops Of Discovery”. Hopefully this helped!!
4 0
3 years ago
Your total sales during a six-hour shift were $1,200. Your individual performance in terms of sales per hour would be:
Anit [1.1K]

Answer:

b. $200

Explanation:

The computation of the individual performance is shown below:

= Total sales ÷ number of shift hours

= $1,200 ÷ 6 hours

= $200

It means that per hour, the individual performance is $200

We simply divide the total sales by the number of shift hours, so that the sales per hour can determined

It shows a relationship between the total sales and the number of shift hours

4 0
4 years ago
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