Answer:
Date Account Title Debit Credit
XX-XX-XXXX Interest expense $13,800
Discount on bond payable $1,300
Cash $12,500
Working
The bonds were issued at a price of 92 which means they were issued at:
= 500,000 * 96/100
= $460,000
Interest expense
= Issue price * interest rate * 6/12 months
= 460,000 * 6% * 6/12
= $13,800
Cash:
= Bond price * coupon rate * 6/12
= 500,000 * 5% * 6/12
= $12,500
Answer: Debit Interest Receivable and credit Interest Revenue, $2950
Explanation:
Based on the information given in the question, we have to calculate the interest accrued and this will be:
= $590,000 × 6% × 1/12
= $590,000 × 0.06 × 0.08333
= $2949.882
= $2950 approximately
Therefore, the adjusting entry that Sandhill should make on December 31, 2020 will be to:
Debit Interest Receivable and credit Interest Revenue, $2950
Answer:
Net amount paid = 391050
Explanation:
Accounts payable
=395,000
Cash
=391,050
Inventory
=3,950
Accounts payable
=396,000
Cash
=396,000
Accounts payable
=395,000
Purchase discount =3,950
Cash
=398,950
Accounts payable
=400,000
Cash
=396,000
Purchase discount
=4,000
Accounts payable = 395,000
Cash = 391,050
Inventory = 3,950
Gross amount due = Amount of purchase - return = 400000-5000 = 395000 will be debited to Accounts payable
Discount will be allowed as payment made within 15 dyas
Disount will be = 1% of 395000 = 3950 which will be credited to inventory
Net amount paid will be credit to cash = 395000-3950 = 391050
Answer:
uh it's 2. i would hope that that answer would be obvious
Answer:
$12,200
Explanation:
Calculation to determine the amount of interest expense was recorded for the period of January 1 to April 30, 2018
Interest expense=$305,000*12%*4/12
Interest expense=$12,200
Therefore the amount of interest expense was recorded for the period of January 1 to April 30, 2018 is $12,200
