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
kipiarov [429]
3 years ago
13

On July 1, 2014, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a

market (effective) interest rate of 11%, receiving cash of $42,309,236. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Instructions1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.2. Journalize the entries to record the following:a. The first semiannual interest payment on December 31, 2014, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)b. The interest payment on June 30, 2015, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)3. Determine the total interest expense for 2014.
Business
1 answer:
andrew11 [14]3 years ago
5 0

Answer:

1.

Dr. Cash                       $42,309,236

Dr. Discount on Bond $3,690,764

Cr. Bond payable        $46,000,000

2.

a.

December 31, 2014

Dr. Interest Expense          $2,392,269.1

Cr. Discount on Bond        $92,269.1

Cr. Bond Interest Payable $2,300,000

b.

June 30, 2015

Dr. Interest Expense          $2,392,269.1

Cr. Discount on Bond        $92,269.1

Cr. Bond Interest Payable $2,300,000

3.

$2,392,269.1

Explanation:

The bond is issued on discount when the bond issuance proceeds are less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

Discount Value = $46,000,000 - 42,309,236 = $3,690,764

Amortization of Discount = $3,690,764 / (20 x 2) = 92,269.1

Coupon Payment = $46,000,000 x 10% x 6/12 = $2,300,000

Total Interest Expense = $2,300,000 + $92,269.1 = $2,392,269.1

You might be interested in
A local family-run Greek restaurant has been a part of the community for twenty years. Their mission is to provide local, fresh,
Furkat [3]

The correct answer to this open question is the following.

Although there are not options provided, we can say that some additions that could be implemented which are aligned with this company’s values are the inclusion on the menu of organic food, vegan food, and kosher products so all kinds of customers can find a good option in the restaurant.

Another important thing is the way to market and communicate their innovations to consumers. In college, the son should have learned that the way a restaurant markets its products and services is as important as the kinds of food it offers.

8 0
3 years ago
Conversion cost is the sum of a.selling cost and administrative costs. b.product costs and period costs. c.direct labor cost and
defon

Answer:

The answer is  c.direct labor cost and overhead costs.

Explanation:

Conversion costs include direct labor and overhead expenses incurred in the process of converting raw materials into finished products

8 0
3 years ago
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
GaryK [48]

Answer:

Option 1 and 2

Explanation:

Complete Question

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?

CHECK ALL THAT APPLY.

  1. High school athletes stop shopping there.
  2. The inventory of sports socks goes unsold.
  3. Publicity for the store declines.
  4. Profits decline because dress shoes cost less than sneakers

Solution

Sole Sister Shoe Store chooses to sell dress shoes over sneakers because  the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence  Sole Sister Shoe Store started selling dress shoes

Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes

7 0
2 years ago
The scarcity problem:- Persists only because countries have failed to achieve continuous full employment.- persists because econ
ladessa [460]

Answer:

Persists because economic wants exceed available productive resources.

Explanation:

According to Lionel Robbins, Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

The problem of scarcity is that our wants are always beyond what we can produce with our resources.

Economics is the solution to this problem of what resources to use, how best to use them, and when to use them.  

Because of this scarcity, all people have to make choices. When making choices, we assess the opportunity cost or the alternative forgone.

The opportunity cost of taking action is what we could have got if we had taken an alternative action.

3 0
3 years ago
Nothing can stay the same
alexandr402 [8]

Answer:

:-) -,-

Explanation:

thanks thanks appreciate it

6 0
3 years ago
Read 2 more answers
Other questions:
  • A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is
    11·1 answer
  • If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use _____
    8·1 answer
  • A company's ____________ is the percentage of the total target market for the product that belongs to the company.
    8·2 answers
  • Sometimes when an organization first starts horizontal coordination efforts to promote innovation, is needed to help employees c
    5·1 answer
  • Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of prod
    5·1 answer
  • A formal agreement between separately owned and controlled facilities to officially coordinate and share certain activities is m
    12·1 answer
  • A nonbottleneck worker currently has an idle time of 20 seconds per unit. Because of the large demand, the company improves the
    10·1 answer
  • Presented below is the trial balance of Pina Corporation at December 31, 2017. Debit CreditCash $ 198,550Sales $ 8,103,580Debt I
    9·1 answer
  • After conducting a market research​ study, Magnificent Manufacturing decided to produce a new interior door to complement its ex
    15·2 answers
  • The following data were taken from the records of Menendez Company:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!