On the first day of the fiscal year, a company issues a $7,900,000, 10%, 9-year bond...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On the first day of the fiscal year, a company issues a $7,900,000, 10%, 9-year bond that pays semiannual interest of $395,000 ($7,900,000 x 10% x 2), receiving cash of $8,900,086. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. On the first day of the fiscal year, a company issues a $7,900,000, 10%, 9-year bond that pays semiannual interest of $395,000 ($7,900,000 x 10% x 2), receiving cash of $8,900,086. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
Expert Answer:
Answer rating: 100% (QA)
Account titles and explanation Debit Credit Cash 890... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
On the first day of the fiscal year, a company issues a $1,000,000, 11%, 10-year bond that pays semiannual interest of $55,000 ($1,000,000 11% ), receiving cash of $942,646. Journalize the bond...
-
On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays semiannual interest of $165,000 ($3,000,000 11% ), receiving cash of $2,889,599. Journalize the...
-
On the first day of the fiscal year, a company issues a $2,000,000, 8%, five-year bond that pays semiannual interest of $80,000 ($2,000,000 8% ), receiving cash of $2,170,604. Journalize the bond...
-
Assume that the Central bank decides to sell government bonds to the commercial banks. a.) Use the demand and supply curves for loanable funds to show the effect of this measure on the interest rate....
-
E. E. Manufacturing Inc.'s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the...
-
Megan operates a house-cleaning business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets the business, and provides supplies and equipment. The business has been...
-
What are five common methods for distributing partnership earnings?
-
Peroni Company paid wages of $170,900 this year. Of this amount, $114,000 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow...
-
Explanation: Indiana Code 31-30-1-4 provides that the juvenile court does not have jurisdiction over an individual for certain offenses if the individual was at least sixteen years of age at the time...
-
In this mini-case, you will complete the test of details on accounts receivable for the 2019 audit of EarthWear Clothiers, Inc. The principal test of detail involves sending "confirmations" or...
-
The weighted average cost of capital is used, as an alternative to the debt ratios for assessing the cost of debt to assess capital investments for determining dividend policy
-
Manuel Patron Inc. announced a bid to take over Vic Orbison Limited. Manuel Patron Inc. has 3 million shares outstanding, selling at $15 per share. Vic Orbison Limited has 2 million shares...
-
Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct...
-
What is the coupon rate of a bond that is priced at $1025 when coupon payments are made monthly, there is 15 years to maturity and the current market rate is 5%.
-
ABC Co is currently considering raising $5 million through a rights issue. Its 1,000,000 shares are currently traded at $20 per share. Its issue manager, XYZ Ltd, has advised ABC to set the...
-
A stock is currently trading for $1200 per share. A certain call option on the stock has a price of $35, a delta of 0.72, and a certain value of gamma. When the stock price suddenly falls to $1178,...
-
How can we make the act of instantiating the template also generate a unique non-template, non-member function? Why is the inserter operator always implemented as a non-member function? What is the...
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
Day Timer Publishers Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $390,000 for April and $360,000...
-
Pryor and Lester are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $12,000 and $8,000, respectively. After...
-
The cash account for Discount Medical Co. at April 30, 2010, indicated a balance of $4,604. The bank statement indicated a balance of $9,158 on April 30, 2010. Comparing the bank statement and the...
-
Objections to monopolies do not include which of the following? a. They reduce output below the efficient level of output that would be produced in perfect competition. b. They reduce the price below...
-
If regulators set a price according to marginal cost pricing, the firm will a. earn positive economic profits. b. make zero economic profits. c. suffer an economic loss. d. earn the same level of...
-
What is the objective of antitrust policy?
Study smarter with the SolutionInn App