Answer and Explanation:
The Journal entry is shown below:-
a. Cash Dr, $20,811,010
To Bonds payable $20,000,000
To Premium on Bonds payable $811,010
(Being issuance of the bond is recorded)
For recording this we debited the cash as it increased the assets and at the same time it also increased the liabilities so the bond payable and premium is credited
b. Interest expenses Dr, $818,899
Premium on Bonds payable $81,101 ($811,010 ÷ 5 × 6 ÷ 12 )
To Cash $900,000 ($20,000,000 × 9% × 6 ÷ 12)
(Being interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it reduced the assets plus the remaining balance is debited to premium on bond payable
c.The contract rate of interest is higher than market rate of interest.
Answer:
Results are below.
Explanation:
<u>The depreciable cost is the result of deducting from the purchase price the salvage value:</u>
<u></u>
Depreciable cost= 56,000 - 8,000
Depreciable cost= $48,000
<u>The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:</u>
<u></u>
Depreciation rate= 1/5 = 0.2 or 20% per year
<u>Finally, the units of production depreciation for the first year:</u>
Annual depreciation= [(original cost - salvage value)/useful life of production in copies]*number of copies
Annual depreciation= (48,000/1,000,000)*240,000
Annual depreciation= 0.048*240,000
Annual depreciation= $11,520
Since the company is following a periodic inventory system, it has to use temporary accounts to record sales and purchases.
Transaction A
Purchases – Dr 860500
Accounts payable 860500
Transaction B
Accounts payable - Dr $111,600
Purchase returns $111,600
Transaction C
Accounts payable - Dr 748900
Discount received 14,978
Cash 733,922
Answer:1. The reason that the varsity team lost to JV team is lack of working together as a team.
2.Coach P. when selecting the rowers for the two teams should have looked at both the psychological(personality types and traits, if they are leader or followers etc.) as well as the physical aspect ( Stamina, Speed ,Coordination, Strength etc.) of each individual.
explanation:
1:Even though the varsity team consisted of the best individuals for speed , strength, coordination and endurance, they lacked the cohesiveness to perform as a unit. Each of the eight individual rowers had to be single-mindedly attuned to one another in order to synchronize their rowing and perform in unison. Unfortunately, the team also too many disruptor and lacked a leader.
2:The Coach should have experimented more by creating different scenarios to see how well the individuals responded and performed to one another in different situations when it came to a team environment. For example, putting the rowers in total control of the team's dynamics is the best hands on lesson they could ever experience. This would have allowed the rowers a deeper understanding what it take to be winner from a loser.
3.Coach P. should switch both the teams for Tuesday since after extensive observations and evaluation he has witnessed JV work as a better team. The JV team possessed better synergy, synchronization, and shared a common goal causing them to win more frequently than the Varsity team, despite the fact that the Varsity team had better individual members. In addition, there has been a precedent for switching boats. During the mid-1990’s, the Cornell Coach faced asimilar situation as Coach P. and as a result of him making the switch, both the JV and Varsity teams ended up winning the Eastern Championships. This demonstrates that it is more likely thatthe teams will win if they agree to switch. Moreover, even if Coach P. decided not to switch the teams, it would have taken quite a while to rebuild Varsity’s team structure, morale, and overall team synergy, implying that they probably would not have been ready in time to compete and win the race as the Varsity team anyway.
Answer:
Please see below the Journal entries required for the Gilman Corporation for the amount borrowed.
Explanation:
Date: December 1
Debit: Cash $20,000
Credit: Notes Payable $20,000
To record Issuance of the note.
Date: December 31
Debit: Interest Expense<em> ($20,000 x 0.06 x 30/360)</em> $100
Credit: Interest Payable $100
To record Accrual Interest at the year end.
Date: March 1
Debit: Note Payable $20,000
Interest Payable $100
Interest Expense <em>($20,000 x 0.06 x 60/360)</em> $200
Credit: Cash $20,300
To record Payment of the note.
