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vaieri [72.5K]
3 years ago
7

Exercise 10-2 Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at pa

r dated January 1, 2019, that have a $2,700,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Business
1 answer:
Elden [556K]3 years ago
3 0

Answer:

June 30 Bond Interest Expense Dr $81000

Cash Cr $81000

(6%/2*$2,700,000)

December 31 Bond Interest Expense Dr $81000

Cash Cr $81000

Bonds Payable Dr $2,700,000

Cash Cr $2,700,000

Explanation:

Record the entry for the first semiannual interest payment and the second semiannual interest payment.

June 30 Bond Interest Expense Dr $81000

Cash Cr $81000

(6%/2*$2,700,000)

December 31 Bond Interest Expense Dr $81000

Cash Cr $81000

Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

Bonds Payable Dr $2,700,000

Cash Cr $2,700,000

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g A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate
Nostrana [21]

Answer:

The answer is option (d)$2.76

Explanation:

Solution

Given that:

The cost of a particular brand of toothpaste = 4 pounds

The exchange rate = .80

Real exchange rate = 1.16

Now

Real exchange rate is given as:

R = real exchange rate

e = nominal exchange rate

PF = foreign price

P = domestic price

Suppose we say that U.S. is a domestic country and British is a foreign country we have the following formula below:

R =  e(PF/P)

R = 1.16

e = 0.80

PF = 4

Thus

R =  e(PF/P)  

1.16 = 0.80(4/P)

P = 3.2/1.16

= 2.7586207

= $2.76

Therefore, The U.S rice of the same toothpaste is about $2.76

4 0
3 years ago
Compare and contrast the product vs. process layouts. What are the advantages & disadvantages? List examples of products tha
Contact [7]

Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

7 0
3 years ago
According to The Wedding Report, in 2010, the average wedding cost a little more than _____. twenty-four thousand dollars five t
sergey [27]

The average wedding costs 24,000$ "According to The Wedding Report, in 2010 the average wedding cost a little more than $24,000." found this in my study guide :) I hope it helps.



5 0
4 years ago
Read 2 more answers
When union representatives negotiate with employers for better wages and working conditions, they are involved in __________?
kifflom [539]
They are in a labor union
3 0
3 years ago
Which of the following would not be (True) in the event that a newly admitted partner pays more than book value for his/her inve
ddd [48]

Answer:

c. Record no revaluations, bonus, or goodwill

Explanation:

As new incoming partner is giving more than the investment required it means there is some goodwill or revaluations or bonus involved which requires to be treated in the books otherwise it will be assumed that accounts are not properly reported and capital accounts will not be justified. Third option says no revaluations, bonus or goodwill will be recorded which is wrong.

4 0
3 years ago
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