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sdas [7]
2 years ago
11

Larkspur, Inc. issued $432,000, 7%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Larkspu

r uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds.
Business
1 answer:
kirill [66]2 years ago
3 0

Answer and Explanation:

The Journal entry to record the issuance of the bond is as follows:

Cash Dr  $449,280 ($432,000 × 1.04)

        To Bond payable $432,000

        To Premium on bond payable $17,280

(Being the issuance of the bond is recorded)

here the cash is debited as it increased the assets and credited the bond payable and the premium on bond payable as it also increased the liabilities

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2 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $58.10. Production costs are $37.49 variable and $10.50 fixed. Bec
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Answer:

Pine Street should sell  finished bookcases because they have a higher contribution margin.

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Contribution Margin

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Less  Production costs

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Finished bookcases

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