What is distinctive about double-entry accounting?

The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated on June 30 and mature on June

Charra [1.4K]

Answer:

cash 967,707 debit

premium on BP 67,707 credit

Bnds Payable 900,000 credit

interest expense 58062.42 debit

premium on BP 437.58 debit

cash 58500 credit

Explanation:

procceds 967,707

face value 900,000

premium on bonds payable 67,707

<em><u>first interest payment</u></em>

carrying value x market rate

967,707 x 0.06 = 58062.42

then cash outlay

face valeu x bond rate

900,000 x 0.065 = 58,500

the difference will be the amortization

8 0

3 years ago

Department 1 completed work on 500 units and transferred them to Department 2. The cost of the units wasâ $750. What is the jour

horsena [70]

Answer:

B. Work-in-Process Inventory-Dept. 2 750 Work-in-Process Inventary Debit. 1 750

Explanation:

The journal entry to record this transaction is shown below:

Work-in-Process Inventory A/c - Department 2 $750

To Work-in-Process Inventory A/c - Department 1 $750

(Being the completed units are transferred)

For recording this transaction we debited the work in process department 2 and credited the work in process department 1

4 0

3 years ago

Three major segments of the transportation industry are motor carriers, such as YRC Worldwide; railroads, such as Union Pacific;

Usimov [2.4K]

Answer:

The assets turnover for the three companies are as follows:

YRC Worldwide Union 1.54

Pacific C.H. 0.40

Robinson Worldwide Inc 4.84

Asset turnover implies how much sales generated by an organization from $1 of asset deployed to the business.

Judging from the above,Robinson Worldwide Inc was the most effective in using its assets to generate sales.It generated $4.84 in sales for every $1 of asset used.

Explanation:

YRC Worldwide Union Pacific C.H. Robinson Worldwide Inc

Asset turnover=net sales/average total assets

Sales 4,334,640.00 16,965,000.00 9,274,305.00

Average Total Assets 2,812,504.00 42,636,000.00 1,914,974.00

Asset turnover=net sales/average total assets

1.54 0.40 4.84

8 0

3 years ago

55.The manager of Bonzai's Boutique has approved Carla's application for credit. The maximum payment that has been approved is $

rosijanka [135]

Answer:

$1,916.2

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $95

First, Calculate the effective rate

EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%

r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month

n = number of years = 24 months

Placing value in the Formula

PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]

PV of Annuity = $1,916.2

8 0

2 years ago

On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent

lara31 [8.8K]

Answer:

A) $21,068

B) $1,525.24

C) $280,457.24

Explanation:

The amount of the discount = face value - market value = $300,000 - $278,932 = $21,068

Amount of interest recognized on December 31, year 1 = ($278,932 x 7%) - ($300,000 x 6%) = $19,525.24 - $18,000 = $1,525.24

Carrying value of the bond liability = $278,932 + $1,525.24 = $280,457.24

6 0

3 years ago