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Schach [20]
2 years ago
8

On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market intere

st rate is 4%. The issue price of the bond was $11,016. Your company used the effective-interest method of amortization. At the end of the first year, your company should:_____.a. debit Interest Expense for $800, credit Premium on Bonds Payable for $145.00, and credit Interest Payable for $655.00.b. debit Interest Expense for $655.00 and credit Interest Payable for $655.00.c. debit Interest Expense for $655.00, debit Premium on Bonds Payable for $145.00, and credit Cash for $800.d. debit Interest Expense for $800, debit Premium on Bonds Payable for $145.00, and credit Interest Payable for $655.00.
Business
1 answer:
Lapatulllka [165]2 years ago
5 0

Answer:

Debit Interest Expense $440.64, Debit Premium on Bonds Payable $159.36 and Credit Cash $600

Explanation:

Amount paid in cash = $10,000 * 6% = $600

Interest expense = $11,016 * 4% = $440.64

Amortization of premium on bonds payable = Amount paid in cash - Interest expense

Amortization of premium on bonds payable = $600  - $440.64

Amortization of premium on bonds payable = $159.36.

Debit Interest Expense $440.64

Debit Premium on Bonds Payable $159.36

Credit Cash $600

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The following partially completed process cost summary describes the July production activities of Ashad Company. Its production
xeze [42]

Answer:

Units Transferred Out $ 663750

Work In Process Ending $ 30440

Direct Materials Costs  $ 11.5 per EUP   Conversion  Costs$6.2 per  EUP

Explanation:

Ashad Company

Weighted Average Method

Cost Of Production Report

Equivalent Units of Production

                                                      Direct Materials           Conversion

Units transferred out                       37,500 EUP                 37,500 EUP

<u>Units of ending work in process      2,000 EUP                    1,200 EUP</u>

<u>Equivalent units of production          39,500 EUP                38,700 EUP</u>

Costs Added

                                                    Direct Materials           Conversion

Costs of beginning work in

process                                               $13,450                    $1,860

<u>Costs incurred this period               440,800                      238,080</u>

<u>Total costs                                       $454,250                   $239,940 </u>

<u />

Costs per EUP

                                                Direct Materials           Conversion

                                $454,250/ 39,500 EUP         $239,940/38,700 EUP

                                     =  $ 11.5 per EUP                        = $6.2 per  EUP

Dividing the costs with EUP gives cost per EUP.

Costs Accounted For

Units Transferred Out $ 663750

Materials = $ 11.5 * 37500=$  431250

Conversion= $ 6.2 * 37500=$ 232500

Total = $ 663750

Work In Process Ending $ 30440

Materials = $ 11.5 * 2000=$  23000

Conversion= $ 6.2 * 1200=$ 7440

Total = $ 30440

Now adding the costs of Transferred out units and the ending work in process inventory equals the total of the costs added.

$ 663750+$ 30440 = $454,250 + $239,940

$ 694190 = $ 694190

8 0
2 years ago
Hor to attract teenagers to go to shopping mall (no discounting)
Radda [10]

Hello!

Often people put up signs that, that person likes and is interested in. People also can bargain with a person. So if they are leaving because they think the product is to high of a price for them, then you can tell them you can lower the price.

( word of advice, this is a last resort option)

I hope it helps!

6 0
3 years ago
Read 2 more answers
Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl
aleksandr82 [10.1K]

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

  • 1500 shares outstanding
  • market price of 22
  • Blackstone has 2.500 shares
  • Outstanding price 38
  • Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

8 0
3 years ago
Which 3 data points can be imported into the app transactions tab in quickbooks online?.
Dmitry [639]

Answer: Description, Date, and Amount. 

5 0
1 year ago
Zack has two savings accounts with a total of $9,000. he withdrew 10% from one and 60% from the other to buy his girlfriend an e
skelet666 [1.2K]
Originally,
Let x = the balance in the first account.
Let y = the balance in the second account.

The total amount in the two accounts is $9,000, therefore
x + y = 9000                      (1)

Zack withdraws 10% of x and 60% of y for a total of $2,175.
Therefore
0.1x + 0.6y = 2175
or
x + 6y = 21750                   (2)

Subtract (1) from (2).
x + 6y - (x + y) = 21750 - 9000
5y = 12750
y = 2550
From (1), obtain
x = 9000 - 2550 = 6450

The balance in the first account is
0.9*x = 0.9*6450 = $5,805
The remaining balance in the second account is
0.4*y = 0.4*2550 = $1,020

Answer:
The balance in the first account is $5,805
The balance in the second account is $1,020

8 0
3 years ago
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