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
podryga [215]
3 years ago
8

On January 1, Year 1, Worthy Co. issued $1,000,000 of bonds payable. The bonds mature in five years on December 31, Year 5, and

pay 9% interest once a year on December 31. The issue sold for $891,857 to yield 12%. Worthy uses the effective interest method. What is the amount of the liability at December 31, Year 2, after the second interest payment?
a. $1,000,000
b. $931,590
c. $908,880
Business
1 answer:
Serggg [28]3 years ago
5 0

Answer:

$927,946

Explanation:

journal entry to record bond issuance:

Dr Cash 891,857

Dr Discount on bonds payable 108,143

    Cr Bonds payable 108,143

amortization of bond discount = ($891,857 x 12%) - $90,000 = $17,023

bond's carrying value at the end of year 1 = $908,880

amortization of bond discount = ($908,880 x 12%) - $90,000 = $19,066

bond's carrying value at the end of year 1 = $927,946

You might be interested in
The Beach Shack Company produced 5,500 cakes that require 3 standard pounds per unit at $3. 00 standard price per pound. The com
prohojiy [21]

Answer:

Explanation:

Standard pounds per cake = 3 pounds

Standard unit price = $3

Standard pounds 5500 cakes = 16,500 pounds

Actual pounds per 5500 cakes = 16,650

Variance = (16,650 - 16,500)=150

Cost of actual materials used = actual materials * standard price

=16,650*3 =49,950

Cost of work in progress = Standard materials * standard price = 16,500*3= 49.500

Direct material quantity variance = Quantity variance * 3

150*3 = 450

Journal entry

Debit work in progress = 49,500

Debit material quantity variance = 450

Credit Material = 49,950

4 0
3 years ago
If real economic growth is 3%, the inflation rate is 5%, and the nominal interest rate is 7%, then the real rate of interest is:
Elanso [62]

Based on the information given  the real rate of interest is:2%.

<h3>Real rate of interest</h3>

Using this formula

Real rate of interest=Nominal interest rate-Inflation rate-

Where:

Inflation rate=5%

Nominal interest rate=7%

Let plug in the formula

Real rate of interest=7%-5%

Real rate of interest=2%

Inconclusion the real rate of interest is:2%.

Learn more about real rate of interest here:brainly.com/question/25877453

3 0
2 years ago
When you listen carefully to directions you are given, it saves time for _________.
Juli2301 [7.4K]
Answer is C , when you actually listen to the person it saves to,e for them because they don't really have to go over it again ; and for you , you don't have to sit there confused or have to ask for more help . Good luck <3
5 0
3 years ago
Read 2 more answers
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with ma
Julli [10]

Answer:

Results are below.

Explanation:

a)

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 313,020 / 58,000

Predetermined manufacturing overhead rate= $5.4 per machine hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Standard= 5.4*26,500= $143,100

Deluxe= 5.4*31,500= $170,100

b)

<u>First, we need to calculate the allocation rates:</u>

Material handling= 183,750 / 1,550= $118.55 per material moves

Setup= 179,180 / 660= $271.48 per setup

<u>Now, we can allocate overhead:</u>

Standard= 118.55*625 + 271.48*85= $97,169.55

Deluxe= 118.55*925 + 271.48*575= $265,759.75

8 0
3 years ago
If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything
skad [1K]
A is the answer


Sorry if I’m wrong
7 0
3 years ago
Other questions:
  • Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last
    5·1 answer
  • The stock valuation model that determines the current stock price by dividing the next annual dividend amount by the excess of t
    14·2 answers
  • Smart lites is a company that manufactures lighting products for industrial businesses. the managers at smart lites want to incr
    7·1 answer
  • Indexing is the process of: Multiple Choice
    6·1 answer
  • One drawback of mailed marketing surveys is
    6·2 answers
  • Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
    12·1 answer
  • When a consumer is able and willing to buy a good or service, he or she creates which of the
    5·2 answers
  • Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of
    14·1 answer
  • A course that costs $500 will allow you to get a job that pays $2 more per hour than your current job. How many hours will you n
    14·1 answer
  • ________ refers to the strategy of getting visitors to a Web site to forward information on the site of their friends in order t
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!