On January 1, 2016, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 20167 Select one: A. $20,658. O B. $24,000. O C. $24,789. OD. $20,000.
Q: U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that…
A: Ratio Analysis is one of the various tools of analyzing financial statements.
Q: Prepare Journal entries for each of the seven transactions posted to the following T-accounts.…
A: Journal entries recording is the first step of accounting cycle process, under which atleast one…
Q: ven the following information for Franklin Jewelers, by how much did the gross profit percentage go…
A:
Q: Portia Grant is an employee who is paid monthly. For the month of January of the current year, she…
A: Net pay is the amount of compensation that remains available for distribution to an employee after…
Q: Bettlejuice Company manufactures and sells one product for $34 per unit. The company maintains no…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Most organizations use residual income instead of return on investment (ROI) as a performance…
A: The Following statement is True because Residual Income is much better than Return on Investment…
Q: Mr B aged 63 years, has earned rupees 75,00,000 out of his business . His ex- wife gifted him cash…
A: Introduction: Taxes are obligatory payments imposed by a government agency, whether local, regional,…
Q: Frauds are often detected through the receipt of an anonymous tip, by management review, by internal…
A: Auditing is the process of checking and verifying books of accounts of the business in order to…
Q: Revenue per Unit $10.00 Commission (variable cost) $1.00 Fill in highlighted cells while including…
A: It is the point at which the company will be in a no-profit or no-loss situation. In other words,…
Q: The Maryland Restaurant generates sales of $1,000,000 a month with variable costs of 30%. The Kobe…
A: GIVEN The Maryland Restaurant generates sales of $100,000 a month with variable costs of 30% The…
Q: the recognition and measurement of IFRS 10 and
A: The answer has been mentioned below.
Q: James Manufacturing has the following information available for July: Flexible Sales Actual Budget…
A: The flexible budget is prepared to compare the actual results with flexible budget for the period.…
Q: 18. Sam files jointly with his wife, and they have 2 children. The family's gross income is $125,…
A: Internal revenue services: It is the income administration for the United States central…
Q: Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the…
A: Solution:- 1)Calculation of Throughput Time as follows under:- Throughput Time = Process time +…
Q: do not equal $1,290
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: On January 1, DDD issued ten-year bonds with a face amount of P1,000,000 and a stated interest rate…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: "Tommy’s Music orders some music books which list for $9.95. What is their cost, after a 20/10 trade…
A: List Price = 9.95 Trade Discount = 20/10 Cost = 9.95 - 9.95*0.20 - (9.95 - 9.95*0.20)*0.10 = 9.95…
Q: Jose receives a commission of 2.4% on his monthly sales up to $3,100. The rate then increases to…
A: Lets understand the basics. For calculating commission on sales, we need to use below formula.…
Q: Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets…
A: Solution... Standard cost of supplies = $540 per month + $103 per job + $34 per meal = $540 +…
Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…
A: Salaries payable is the amount of salary which is due but not yet paid.
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: As per IAS 16- PPE, A decrease arising as a result of a revaluation should be recognized as an…
Q: What is the capital components. breifly define.
A: Introduction: The Weighted Average Cost of Capital (WACC) of a company shows its overall cost of…
Q: A certain machine has a first cost of P 14,000, a ife of 8 years with a salvage value of P 10,000 at…
A: Depreciation means the expenses written off from value of fixed assets due to natural wear and tear…
Q: Sly is a widower and wants to make annual gifts of cash to each of his three children and six…
A: GIVEN Sly is a widower and wants to make annual gifts of cash to each of his three children and…
Q: inventory purchases on credit 241,000 and ending inventory 53,400 with 1.11 index journal entry and…
A: Cost of Goods Sold refers to cost of goods sold sold to customer.
Q: Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial…
A: Profit and loss account represents profits or loss of the business during the period as specified in…
Q: Susie Smith opened Susie's Commerical Clearning on April 1, 2021. In Apr, the following transactions…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: This is question of Profit maximising product mix where one of the resource of the production is…
Q: Coverage was 100/300/50. What was the total injury liability coverage in this accident? O $40,000 O…
A: Introduction:- The following basic information as follows under:- Last month some of your friends…
Q: Assume Skyler Industries has debt of $4,841,000 with a cost of capital of 7.6% and equity of…
A: The weighted average cost of capital (WACC) is a company's average cost of capital from all sources,…
Q: Gamma Ltd is a small manufacturing business. Direct materials and direct labour are the only costs…
A: Manufacturing cost means the cost which is incurred to manufactured the product including the direct…
Q: A qualified distribution from a Roth IRA must meet which of the following requirements? I. The…
A:
Q: Tolbert Company purchased equipment on January 1, 2018, for $60,000. It is that the Compute the…
A: Depreciation as per Straight-line method=Cost of Asset-Salvage ValueUseful life Depreciation as per…
Q: 18. Sam files jointly with his wife, and they have 2 children. The family's gross income is $125,…
A: Introduction: A federal income tax is the total tax on annual earnings. Individuals, businesses, and…
Q: Blue Ridge Marketing Inc, manufactures two products, A and 8. Presently, the company uses a single…
A: Factory overhead is the cost of producing goods and services or manufacturing in factory it includes…
Q: Compute the following for Stanley Limited. Round your answers to two decimal places. All answers…
A: The question is related to the Ratio Analysis. Ratio is the indicated quotient of two mathematical…
Q: Danube Corporation operates a theatrical costume shop. Taxable income for the current year is…
A: The answer for the multiple choice question and relevant working are presented hereunder : Taxable…
Q: A partner in a limited liability partnership (LLP): 1. has no liability for acts of malfeasance of…
A: A partner in a limited liability partnership is liable upto the amount invested by him. He has no…
Q: 24
A: A taxpayer's taxable income is equal to his or her gross income less any permitted tax deductions. A…
Q: AAA Inc. purchased P400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8 percent…
A: GIVEN AAA Inc. purchased $400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8%…
Q: A discount store buys a piece of luggage whose list price is $80. They receive a 40% trade discount.…
A: Net cost is gross cost of a product reduced by any gain received from owing the product. The…
Q: f money is worth 5% compounded annually, what payment 10 years from now is equivalent to a payment…
A: This is a question of compound interest Compound interest (or compounding interest) is the interest…
Q: Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The…
A: Formula: Depreciation per unit = ( Asset cost - Salvage value ) / Total estimated Units. Deduction…
Q: Which of the following is false about the CARES Act? O the second largest allocation was to the…
A: Cares Act Cares act was signed by president trump that dedicated to historic government funding to…
Q: Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes…
A: There are two type of costs incurred in the business. Variable costs are those costs which changes…
Q: Given the following, calculatge the state (assume 5.3%) and federal unemployment taxes that the…
A: Payroll accounting is the calculation of employee's compensation. It includes recording and…
Q: On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: Use the information below for questions 21-22 net income of $300,000. total assets of $1,500,000.…
A: Return on Total Assets: The return on total assets ratio reveals how successfully a company's…
Q: Do b)
A: Disposal of Asset Account Format /Template Asset Disposal Account Date Account Name Debit…
Q: December 31, 20 Required:
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
- Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267On December 31, 2018, when the market interest rate is 10%, Willis Realty issues $1,000,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. Willis Realty received $1,077,988 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Interest Carrying Cash Paid Expense Amortized Amount 12/31/2018 06/30/2019 12/31/2019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the…On January 1, 2016, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2018, by each of the two approaches. 4. Explain why the pattern of interest differs between the two methods. 5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2018, for $10,000 of the bonds?
- On November 1, 2015, Davis Company issued a $30,000, 10-year, 7% bonds for $29,100. Interest is payable each November 1 and May 1. Davis uses the straight-line method of amortization. How much is the amount of discount amortization on each semi-annual interest date?On January 1, 2024, Reyes Recreational Products issued $150,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $145,153 to yield an annual return of 10%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2026, by each of the two approaches. 5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2026, for $15,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule that determines interest at the effective interest rate. Note: Enter your answers in whole dollars.…Starlight Drive-Ins Ltd. borrowed money by issuing$5,000,000 of 7% bonds payable at 95.5 on July 1, 2018. The bonds are 10-year bonds and payinterest each January 1 and July 1. How much interest expense will Starlight report each six months? Use the straight-lineamortization method. Journalize the entries for the accrual of interest and amortization ofdiscount on December 31, 2018, and the payment of interest on January 1, 2019.
- On January 1, 2018, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%.Required:1. Prepare an amortization schedule that determines interest at the effective interest rate.2. Prepare an amortization schedule by the straight-line method.3. Prepare the journal entries to record interest expense on June 30, 2020, by each of the two approaches.4. Explain why the pattern of interest differs between the two methods.5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30,2020, for $10,000 of the bonds?On January 1, 2016, Rahman Co. issued five-year bonds with a face value of $ 100,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. Assume that the bonds were sold to yield 8%. Required: 1. Compute the amount of cash Rahman Co. received on 1/1/2016. Prepare an amortization table for 2016 through 2020 for the bonds. Assume amortization is recorded on interest payment dates. Give all journal entries Rahman Co. entered for the years 2016 through 2020. 2. 3. 4. Show how the bonds were shown on the financial statements of Rahman Co. on 12/31/2016 and 12/31/2017. Do not forget to show income statement effects. What will be the maturity value of the bonds on 1/1/2021? 5.On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 11%. Interest is payable annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions.