All categories

3 years ago

These are selected 2022 transactions for Pronghorn Corporation:

Business

1 answer:

Nataly [62]3 years ago

5 0

Answer:

December 31, 2022, amortization expense of copyright

Dr Amortization expense 19,500

Cr Copyright 19,500

December 31, 2022, amortization expense of patent

Dr Amortization expense 10,000

Cr Patent 10,000

No journal entry required for the Goodwill since its useful life is indefinite

You might be interested in

Larsen Corporation reported $200,000 in revenues in its 2021 financial statements, of which $66,000 will not be included in the

Anastaziya [24]

Answer:

$16,500

Explanation:

The computation of the deferred income tax liability for the year 2021 is shown below:

= Amount not included in tax return × enacted tax rate for 2022 year

= $66,000 × 25%

= $16,500

Simply we multiplied the amount not included with the enacted tax rate for 2022 year so that the correct amount could come

And, we ignored the other information given in the question

5 0

3 years ago

On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity.

babymother [125]

Answer and Explanation:

The journal entries are shown below:

a. Note receivable Dr $3,800,000

To Cash $3,800,000

(Being the acceptance of the note is recorded)

For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities

b. Interest receivable Dr $38,000

To Interest revenue $38,000

(Being the interest revenue is recorded)

For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue

The computation is shown below:

= $3,800,000 × 6% × 2 months ÷ 12 months

= $38,000

7 0

3 years ago

Grocery Corporation received $330,654 for 9.50 percent bonds issued on January 1, 2018, at a market interest rate of 6.50 percen

andre [41]

Answer:

Explanation:

Issue price of bond = $330,654

Face Value = $272000

Premium on issue of bond = $330,654 - $272000 = 58654

Journal entry for bond issuance:

Cash Dr $330,654

Bonds Payable $272000

Premium on Bonds payable $58654

(Being bond issued at a premium of $58654)

As per effective interest method, interest expense = market rate * book value of bond

= 6.5% * $330,654 = $21492.5

Cash interest = $272000 * 9.5% = $25840

Premium to be amortized on interest date = $25840 - $21492.5 = $4347.5 or $4348

Journal entry for interest payment on December 31:

Account Financial Issuance Interest paid

Statement

Bonds payable Balance Sheet 272000

Discount on Bonds payable NA NA NA

Interest expense Income Statement 0 21492.5

Premium on Bonds Payable Balance Sheet 58654 -3813

Note: Interest expense for the year:

Interest to be paid ($272000 * 9.5%) 25840

Less: Amortization of Premium (58654/6.5) 3813

Interest expense 21492.5

Journal entry:

Interest expense Dr. 21492.5

Premium on Bonds payable Dr. 3813

Cash Account 25306

Note: here, it has been premium has been written on Straight line basis.

3 0

3 years ago

Every morning, peter goes to one of the nearby convenience stores and buys a carton of levin's chocolate milk for breakfast. whe

Nady [450]

Answer:

a. brand loyalty

Explanation:

As Peter goes to the nearby shop every day and buys the same brand carton of levins chocolate milk for breakfast this shows that the peters are a brand loyal customers as he goes without the milk if not buying the popular brand.

5 0

3 years ago

Which is a certificate of debt issued by corporations and governments?

IgorLugansk [536]

I believe the correct answer from the choices listed above is option 2. A certificate of debt issued by corporations and governments is called a bond. It is a document that states the details of the bond including the bond issuer's name, the bond par value or face amount, the interest rate, and the maturity date. Hope this answers the question.

3 0

3 years ago

Read 2 more answers