Borrowers will be charged interest: *

On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 5 years. The contract rat

Elenna [48]

Answer:

The journal entry for the interest payment is shown below:

Explanation:

Interest Expense A/c........................Dr $16,098

Premium on bonds payable A/c....Dr $952

To Cash A/c............................Cr $17,050

Working Note:

Interest expense = Bonds sale value × Market rate

= $321,964 × 5%

= $16,098

The market rate will be:

= 10 / 2

= 5%

Because it is paid semiannually, so rate is divided by 2.

Cash = Par value × Contract rate

= $310,000 × 5.5%

= $17,050

The contract rate will be:

= 11 / 2

= 5.5%

Because it is paid semiannually, so rate is divided by 2.

3 0

3 years ago

The Ascent, a mountain bicycle manufacturer, has been in the bicycle industry for a year now. The CEO wishes to better the compa

Alinara [238K]

Answer: e. generating alternative goals and plans.

Explanation:

The step in formal planning process is the CEO performing when he debates between opening a new branch and reducing the prices is referred to as generating alternative goals and plans.

Here, the CEO wants to increase the sales of the company and in an attempt to do that he's considering different alternatives in order to know and decide which one will be best for the company to undertake. This means he is generating alternative goals and plans.

Options A-D are wrong as the CEO isn't monitoring, controlling or implementing any plan. Option E is the right answer.

6 0

3 years ago

On September 1, 2021, Southwest Airlines borrows $39.6 million, of which $7.2 million is due next year. Show how Southwest Airli

Flauer [41]

Answer:

$10,440,000

Explanation:

The computation of Total liabilities is shown below:-

Balance Sheet

Current liability

Current portion of long term debt $7,200,000

Long term liability

Notes payable $3,240,000

Total Liabilities $10,440,000

Working Note

Notes Payable = $39.6 million - $7.2 million

= $32.4 million

4 0

3 years ago

What will happen in a market where a binding price floor is removed? Group of answer choices The price or quantity of the produc

never [62]

Answer:

The correct answer is letter "D": There will be downward pressure on the prices.

Explanation:

Price floors are the minimum legal prices that buyers are expected to pay for a product. These prices are usually set by law with the intervention of the government. In the case the price floor is removed, the price tendency is to go down since as there is no minimum price anymore, buyers could take advantage of the situation to offer less money for the same product.

3 0

4 years ago

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year:

wel

Answer: cost of goods manufactured during the current year: $95,600

Explanation:

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing Overhead

But

Manufacturing Overhead= Cost added during accounting period + beginning work-in-process - ending work-in-process

= $51,100 + $11,500 - $12,100

=$50,500

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing Overhead

=$19,800 + $25,300 + $50,500

=$95,600

or Using the formulae

Costs Added = Direct Materials Used + Direct Labor + Factory Overhead

=$19,800 + $25,300 + $51,500 = $96,200

Cost of Goods Manufactured = Costs Added + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured

$96,200+ $11,500 - $12,100=$95,600

3 0

4 years ago