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
pickupchik [31]
3 years ago
13

Reporting Financial Statement Effects of Bond Transactions Lundholm, Inc., which reports financial statements each December 31,

is authorized to issue $500,000 of 9%, 15-year bonds dated May 1, 2018, with interest payments on October 31 and April 30. Assume the bonds are issued at par on May 1, 2018. a. Prepare journal entries to record the bond issuance, payment of the first semiannual period’s interest, and retirement of $300,000 of the bonds at 101 on November 1, 2019.
Business
1 answer:
saw5 [17]3 years ago
8 0

Answer:

                            Lundholm, Inc

                            Journal Entries

Date          Account Titles                   Debit          Credit

May 1, 18   Cash                                $500,000

                       Bonds payable                               $500,000

                 (To record the bond issuance)                  

31 Oct, 18  Interest Expenses           $22,500

                 (500000*9%*6/12)

                         Cash                                               $22,500

                 (To record payment of the first semiannual period’s interest)

Nov 1, 19  Bonds payable                  $300,000

                Loss on Bonds                  $3,000

                          Cash                                                $303,000

                 (To record retirement the bonds at 101 on November 1, 2019)

You might be interested in
An informal writing style is typically appropriate when writing for an infamiliar audience.​
marysya [2.9K]

Answer:

Analytical reports are written for external audiences; informational reports are written for internal. An informal writing style is appropriate for external reports

Explanation:

Meaning of Informal Writing Style

Colloquial – Informal writing is similar to a spoken conversation. Informal writing may include slang, figures of speech, broken syntax, asides and so on. Informal writing takes a personal tone as if you were speaking directly to your audience (the reader).

I hope that this helps you

6 0
3 years ago
Ron, a businessman who invests heavily in the stock market, has suffered a serious loss with his latest venture. The very though
IRINA_888 [86]

Answer: Escape avoidance

Explanation:

Escape avoidance also known as avoidance coping, is an approach that is used to deal with stress related issues. Escape avoidance is a form of coping which involves the changing of one's behavior in order to avoid thinking or feeling things that makes the person uncomfortable.

Escape avoidance involves trying to avoid stress than dealing with them.

It is a great way to relieve stress. Ron hanging out with friends after his losses is trying to take his mind away from the losses and relieve his stress. This is escape avoidance.

5 0
3 years ago
What is the name of the process that weighs the alternatives, gathers all necessary information, and can ultimately lead you to
DiKsa [7]
This process is known as decision making.
6 0
3 years ago
What factor is usually agreed upon prior to the submission of a purchase order?
tester [92]

Answer:

number of products to be purchased

Explanation:

A purchase order is prepared by a customer and addressed to a trader.  The document instructs the trader to supply the customer with the goods stated in the purchase order document.

Before a customer writes the purchase order, an agreement is made on the quantity to be ordered. The trader has to confirm that they have the required quantity in the stores, or it will be availed within a reasonable time.

The price is agreed at the quotation stage. The customer first sends an inquiry, which the customer responds to with a quotation.

4 0
3 years ago
You need to accumulate $10,000. To do so, you plan to make deposits of $1,500 per year - with the first payment being made a yea
Jet001 [13]

Answer:

5.4 years

Explanation:

Future value is the value of the calculated by compounding a specific present value using a specific discount rate

Payment = $1,500

Rate = 9.56%

Future value = $10,000

We will use the following formula to calculate the numbers of years.

Future Value = Payment x [ ( 1  + r)^n - 1 / r ]

$10,000 = $1,500 x [ ( 1 + 9.56%)^n - 1 / 9.56%

$10,000 x 9.56% / 1,500 = ( 1 + 9.56%)^n - 1

0.6373 +1 = 1.0956^n

1.6373 = 1.0956^n

Log 1.6373 = n log 1.0956

n = log 1.0956 / Log 1.6373

n = 5.4 years

7 0
3 years ago
Other questions:
  • Suppose the market for the magazine is in equilibrium. Some students insist on raising the cover price by $1 and printing the sa
    5·1 answer
  • At what point does buying in bulk stop being a wise spending choice
    9·2 answers
  • Assume you invest money in a bond that will pay you $250,000 in four years. the bond has an annual interest rate of 5%. you do n
    5·1 answer
  • Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15
    14·1 answer
  • Full-service advertising agency refers to
    10·1 answer
  • Health mart is a retail store selling home oxygen equipment. health mart also services home oxygen​ equipment, for which the com
    10·1 answer
  • Health food corporation's bonds have 7 years remaining to maturity. the bonds have a face value of $1,000 and a yield to maturit
    6·1 answer
  • Which of the following accurately describes a capital gain?
    15·1 answer
  • When looking for pre-approval on a car loan you should... select the loan that has the longest repayment period. get a loan from
    10·1 answer
  • The strategic management process is the: a. full set of commitments, decisions, and actions firms take to achieve strategic comp
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!