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denpristay [2]
3 years ago
14

Teal Mountain Inc. issues $5.0 million, 10-year, 8% bonds at 101, with interest payable on January 1. The straight-line method i

s used to amortize bond premium. (a)Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2022, assuming no previous accrual of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
Troyanec [42]3 years ago
8 0

Answer:

Dec. 31

Dr Interest expense $405,000

Cr Discount on bonds payable $5,000

Cr Cash $400,000

Explanation:

Preparation of the journal entry to record interest expense and bond premium amortization on December 31, 2022

Dec. 31

Dr Interest expense $405,000

($400,000+$5,000)

Cr Discount on bonds payable $5,000

[$5,000,000 - ($5,000,000 x 101/100)/10]

Cr Cash ($5,000,000 x 8%) $400,000

(To record interest expense and bond premium amortization)

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At the beginning of the month, the forming department of martin manufacturing had 10,000 units in inventory, 30% complete as to
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Answer:

Equivalent units for materials are  68,400 units

Equivalent units for conversion are  66,800 units

Explanation:

Eighted average costing adds the value of beginning invventory in the period cost to calculate the average cost per unit.

According to this method the equivalent units formula is as follow

Equivalent Units  = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage

Material

Equivalent Units  = 62,000 + 8,000 x 80% = 68,400 units

Conversion

Equivalent Units  = 62,000 + 8,000 x 60% = 66,800 units

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Which of the following is not a function of public relations?
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4 years ago
How does a repo differ from a fed funds transaction? how do their rates compare?
alexgriva [62]

A repo is basically a collateralized loan, whereas Fed funds are uncollateralized

<h3>What is  collateralized loan?</h3>

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3 0
2 years ago
How is the balance sheet used to record amortization and why might it be useful as coupon payments are made?
MrMuchimi

Answer:

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Explanation:

4 0
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