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
densk [106]
4 years ago
9

Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on Janua

ry 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Business
1 answer:
sesenic [268]4 years ago
4 0

Answer:

The first interest payment:

Dr interest  expense   $144,000

Cr cash                                         $144,000

The issuance of the remaining bonds"

Dr cash           $400,000

Cr bonds payable            $400,000

Explanation:

The first  interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.

The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.

You might be interested in
How do i make someones answer the brainliest
Aleksandr [31]
I don’t get what your saying

But could u give more explanation
4 0
3 years ago
Read 2 more answers
Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will
cluponka [151]

Answer:

depreciation rate per unit $0.34

Explanation:

To calculate the depreciation cost per unit we divide the amount subject to depreciation by the estimated untis production over its useful life:

depreciable amount:

$41,000 - $3,600 = $ 37,400

depreciation rate:

$37,400 / 110,000 units = $0.34

8 0
3 years ago
Which type of business is likely to have purchasing activities related primarily to consumable goods rather than products that w
lilavasa [31]

Answer:

service-oriented business

Explanation:

Ape.x verified

5 0
3 years ago
Government is lobbied to institute price controls because: Multiple Choice
trapecia [35]

Answer:

people care more about their own surplus than they do about total surplus. 

Explanation:

Price control can either be a price ceiling or a price floor.

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. It is usually set below equilibrium price.

Price ceiling increase consumer surplus and reduce producer surplus.

A price floor is when the government or an agency of the government sets the least price a good or service can be sold. It is usually set above equilibrium price.

Price floor increases producer surplus and reduces consumer surplus.

Producers would be advocating for a price floor because it increases their surplus, while, consumers would advocate for a price ceiling.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Producer surplus is the difference between the price of a product and the least price the seller is willing to sell the product.

I hope my answer helps you

7 0
3 years ago
Mondo Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could __
Allisa [31]

Answer:

The answer is 'sell future contracts on yen

Explanation:

Futures contract is a form of derivative that is standardized. It occurs through the exchange rather than over the counter. It is safe from default or counterparty risk because the clearing house guarantees any loss.

Futures contract obligates the parties involved to either buy or sell the underlying security.

Because Mondo corporation is expecting some of its exports in yen and it is afraid of fall in exchange of yen relative to US dollar, to hedge the risk, it must sell future contracts on yen.

5 0
3 years ago
Other questions:
  • To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales.
    5·1 answer
  • How successful were the redeemers at using the "race card" to promote their agendas?
    6·1 answer
  • Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not i
    13·1 answer
  • An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,979. If Allowance fo
    12·1 answer
  • Global Traders is offering 130,000 shares of stock to the public in a general cash offer. The offer price is $38 a share and the
    7·1 answer
  • Sound Design sells its computer speakers for $115 per set Its variable cost is $75 per set ot speakers. Fixed costs are $80,000
    7·1 answer
  • What is the weighted average cost of capital for a corporation that finances an expansion project using 35% retained earnings an
    11·1 answer
  • In the month of November Marigold Corp. wrote checks in the amount of $43300. In December, checks in the amount of $59239 were w
    10·2 answers
  • Suppose there is a rash of pickpocketing. As a result, people want to keep less cash on hand, decreasing the demand for money. A
    11·2 answers
  • Which is a better deal on a $200 item: 33% off original price or 20% off and additional 15% off at the register?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!