A company that owns companies that are in a different industry and performs

What is distinctive about double-entry accounting?

sukhopar [10]

Answer:

the answer to your question is d

7 0

3 years ago

On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds

Salsk061 [2.6K]

Answer:

Given that,

Value of bonds issued = $100,000

Maturity period = 10 years

Bonds were issued at face value.

Interest rate = 8%

Interest is paid once per year on December 31.

Since, the bonds are issued at the face value, so there would be no premium or discount on the issue of bonds.

The cash is received by the company for issuing bonds and it is debited. We know that bonds are a part of liabilities, so they are credited

Therefore, the journal entry is as follows:

Cash A/c Dr. $100,000

To bonds payable $100,000

(To record the issuance of bonds)

7 0

3 years ago

A company issues $25300000, 7.8%, 20-year bonds to yield 8.0% on January 1, Year 17. Interest is paid on June 30 and December 31

kirza4 [7]

Answer:

$1,960,623

($24,505,180 × .04) + ($24,510,387 × .04) = $1,960,623.

Explanation:

3 0

3 years ago

The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a mor

Veseljchak [2.6K]

Answer:

true

Explanation:

A stock dividend refers to the payout to owners that is provided not in cash but in equity. The stock dividends does have the benefit of paying stakeholders without lowering the cash flow for the business.

A stock split and option split is growing a company's amount of assets. A stock split triggers a fall in the trading price of actual securities, which does not trigger a shift in the business's market capitalisation.

Thus there is no monetary gain benefits from both the methods they are just implemented to adjust price of shares.

3 0

4 years ago

he variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current ra

OverLord2011 [107]

Answer: $0.51

Kristen Lu purchased a used automobile for $25,950 at the beginning of last year and incurred the following operating costs:

Depreciation ($25,950 ÷ 5 years) $5,190

Insurance $2,700

Garage rent $1,400

Automobile tax and license $710

Variable operating cost $0.11 per mile

The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,190. The car is kept in a garage for a monthly fee.

Explanation:

To calculate the fixed cost per mile, calculate the total fixed cost and divide by the number of miles (25000).

The total fixed cost combines all the cost that do not change depending on the level of usage. These costs do not reduce if Kristen uses her car less or increase if she uses her car more. The variable cost is the opposite of this.

Total fixed cost = $5,190 + $2,700 + $1,400 + $710 = 10,000

Fixed cost per mile = 10000/25000 = $0.40

Variable Operating Cost/Mile = $0.11

Average Operating Cost/Mile = $0.51

5 0

4 years ago