On 6/30/12, a company recorded a journal entry for the coupon payment on its bond. As part of the journal entry, the company debited bonds payable. Which of the following is true regarding this journal entry?

a. The company debited Interest Expense
b. The bond was issued at a discount
c. The proceeds of the bond were less than the face value
d. The company credited Cash
e. The coupon rate is greater than the effective rate

Answers

Answer 1

Answer:

a. The company debited Interest Expense  d. The company credited Cash

Explanation:

The coupon payment represents the interest payment being paid by the company on the bond. They will therefore record this coupon by debiting it to the Interest expense account as expenses are debited when they are incurred.

The same amount will be credited to the Cash account because the payment will come from the cash holdings of the company. Cash is an asset account so it is credited when it reduces.


Related Questions

Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $620 Cost of goods sold 217 Gross margin 403 Salaries expense$85 Depreciation expense 72 Amortization expense 5 Interest expense 12 Loss on sale of land 3 177 Income before taxes 226 Income tax expense 113 Net Income $113 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 20212020Change Cash$108 $104 $4 Accounts receivable 224 238 (14) Inventory 442 454 (12) Accounts payable 150 142 8 Salaries payable 82 90 (8) Interest payable 31 24 7 Income tax payable 21 14 7 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method

Answers

Answer:

$233 million

Explanation:

                      Statement of cash flow

              Cash flow from operating activity

Particulars                                                 Amount ($ in millions)

Net income                                                 113

Adjustment in net income

Depreciation                                   72  

Amortization                                    5

Loss on sale of land                        3

Decrease account receivable       14  

Decrease inventory                       12

Increase account payable             8

Decrease salary payable              (8)

Increase interest payable              7

Increase income tax payable        7           120

Net cash flow from operating activity     233

The current monthly production volume of a company is 1,120 units. Workers are paid $19 per hour, and each worker can produce 4 units per hour. The fixed costs for a month are $4,200. Determine the selling price of the product that the company should charge in order to breakeven its monthly profit.

Answers

Answer:

The selling price of the product that the company should charge in order to breakeven its monthly profit is $8.50 per unit.

Explanation:

Number of hours worked by workers per month = Total monthly units / Units per hour = 1,120 / 4 = 280

Total monthly variable cost = Total monthly wages = Number of hours worked by workers per month * Hourly rate = 280 * $19 = $5,320

Total monthly cost = Total monthly variable cost + Fixed costs for a month = $5,320 + $4,200 = $9,520

Selling price to breakeven = Total monthly cost / Total monthly units = $9,520 / 1,120 = $8.50

Therefore, the selling price of the product that the company should charge in order to breakeven its monthly profit is $8.50 per unit.

If you put up $25,000 today in exchange for a 8.50 percent, 19-year annuity, what will the annual cash flow be

Answers

Answer:

The right solution is "$2697.54".

Explanation:

Given:

Interest rate,

r = 8.50%

or,

 = 0.085

Number of periods,

n = 19

Present value,

= $25,000

As we know,

⇒  [tex]Present \ value=C\times \frac{[1-(1+5)^{-n}]}{r}[/tex]

By substituting the values, we get

⇒                [tex]25000=C\times \frac{[1-(1+0.085)^{-19}]}{0.085}[/tex]

⇒                 [tex]2125=C\times [1-0.21224378136][/tex]

⇒                 [tex]2125=C\times 0.787756219[/tex]

⇒                     [tex]C=\frac{2125}{0.787756219}[/tex]

⇒                         [tex]=2697.54[/tex] ($)

The following are users of external financial statements, EXCEPT: a. internal auditors. b. shareholders. c. Internal Revenue Service (IRS). d. Securities and Exchange Commission (SEC).

Answers

Answer:

a. internal auditors.

Explanation:

external financial can be regarded as statement such as income statement as well as balance sheet or statement of cash flowsStatement of Cash that gives information about the company

Users of external financial statements, are

✓shareholders.

✓Internal Revenue Service (IRS).

✓ Securities and Exchange Commission (SEC).

Q8 Bernard co. has 9% coupon bonds on the market that have 11 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 10%, what is the current bond price (in $ dollars)

Answers

Answer: Hello the face value of the bond is missing hence I will assume $1000 as the face value.

$935.05

Explanation:

Assumption:  Face value of Bond = $1,000

Determine the current bond price

Nper = 11 years

YTM ( rate )  = 10%

PMT  = 9% ( coupon rate ) * 1000 ( face value of bond ) = 90

Fv = $1000

apply excel function to determine the current bond price

=PV( 10%,11,90,1000,0) = $935.05  

Note : You can insert the face value you have into the excel function if the value you have isn't $1000 as I assumed

During 2021, Blossom Co. incurred the following costs: Testing in search for process alternatives $390000 Costs of marketing research for new product 260000 Modification of the formulation of a process 570000 Research and development services performed by Crane Corp. for Blossom 485000 In Blossom's 2021 income statement, research and development expense should be

Answers

Answer:

See below

Explanation:

Given the above information, our concern when calculating amount of research and development costs charged to Blossom corp. for 2021 should be the period cost. This means costs that are incurred in the period under review. I.e 2021.

= Testing in search for process alternative + Cost of marketing research + Modification of formulation of a process + Consulting fees

= $390,000 + $260,000 + $570,000 + $485,000

= $1,705,000

Therefore, Blossom's 2021 income statement , research and development expense should be $1,705,000.

You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment

Answers

If you want to invest $25,000 and are looking for safe investment options. The effective rate of return that you will earn from this investment is  4.08%.

How to find the Effective rate of return?

Given data:

Investment = $25,000

Rate = r = 8%

Number of months = 12 × 2 = 24 months (Bimonthly)

Now let find the Effective rate of return

Effective rate of return = (1  + 0.04/24)^24 -1

Effective rate of return = 4.08%

Therefore we can conclude that the Effective rate of return is 4.08%.

Learn more about Effective rate of return here:https://brainly.com/question/28361279

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On October 6, 2021, Ronan Corp. sold land to Bane Co., its wholly owned subsidiary. The land cost $72,400 and was sold to Bane for $96,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?a. No gain may be recognized.b. As Bane uses the land.c. When Bane Co. sells the land to a third party.d. Proportionately over a designated period of years.e. When Bane Co. begins using the land productively.

Answers

Answer:

c. When Bane Co. sells the land to a third party

Explanation:

As in the case of the consolidated financial statement no gain or loss should be recognized when there is an intercompany transactions also it would be removed at the time of consolidation

So the gain that should be recognized at the time of sale of the land would occur when the company sold the land to the third party

Therefore the option c is correct

An investment offers $5,800 per year for 20 years, with the first payment occurring one year from now. a. If the required return is 7 percent, what is the value of the investment today

Answers

Answer:

Present value of the investment= $61,445.28

Explanation:

Giving the following information:

Annual payment= $5,800

Number of periods= 20 years

Interest rate= 7%

First, we need to calculate the future value of the investment:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {5,800*[(1.07^20) - 1]} / 0.07

FV= $237,773.86

Now, the present value:

PV= FV / (1 + i)^n

PV= 237,773.86 / (1.07^20)

PV= $61,445.28

Determine whether each of the following statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.

a. The government prohibits fast-food restaurants from selling hamburgers for more than $8 each.
b. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
c. The government has instituted a legal minimum price of $5 each for hamburgers.

Answers

Answer:

price ceiling non binding

price ceiling binding

price floor non-binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

the minimum price for hamburgers is $5. this is an example of a price floor

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

The government sets the maximum price for hamburgers. this is an example of a price ceiling

Restaurants are prevented from hiring more workers and paying them a better wage. this is an example of a binding price ceiling

Effects of a price ceiling

1. It leads to shortages

2. it leads to the development of black markets

3. it prevents producers from raising price beyond a certain price

4. It lowers the price consumers pay for a product. This increases consumer surplus

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match the most probable matching method to the costs listed below.
1. Dividends
2. Prepaid Insurance
3. Unearned Rent
4. Fees Earned
5. Patents
A. Stockholders' Equity
B. Revenue
C. Expenses
D. Assets
E. Liabilities

Answers

Answer and Explanation:

The matching is as follows:

1. Dividends = A. Stockholders' Equity

2. Prepaid Insurance = D. Assets

3. Unearned Rent = E. Liabilities

4. Fees Earned = B. Revenue

5. Patents = D. Assets

In this way it should be matched

Like the dividend is come under equity so it is shown under stockholder equity

likewise it is applied for the other items

Assume your entry price for both long and short positions is $50 and you would like to set the reward-risk ratio (RRR) at 1.2. Calculate the profit and loss exit points for both long and short positions.

Answers

Answer:

Long Position

Profit exit point: sell limit= 8.33

Loss exit point= 41.66

Short Position

Lost exit point: buy stop= 58

Profit exit point:buy limit=40

Explanation:

Calculation to determine the profit and loss exit points for both long and short positions.

LONG POSITION profit and loss exit points

First step is to calculate the Profit exit point: sell limit

Profit exit point: sell limit=( 50x10% )/1.2

Profit exit point: sell limit=$10/1.2

Profit exit point: sell limit= 8.33

Now let calculate the Loss exit point

Loss exit point=50-8.33

Loss exit point= 41.66

SHORT POSITION profit and loss exit points

Lost exit point: buy stop=20%/x=1.2

Lost exit point: buy stop=20%/2

Lost exit point: buy stop=1.6

Lost exit point: buy stop= 50+(50x1.6)

Lost exit point: buy stop= 58

Now let calculate the Profit exit point:buy limit:

Profit exit point:buy limit=50-(50*.20)

Profit exit point:buy limit=40

Matilda, an employee, received an e-mail from an angry client about a certain product. Although it was not Matilda's fault, she hesitated to report it to her manager because she knew that he had a tendency to unfairly blame people for things. In this case, which of the following is true of Matilda's company?
a. Reviews are not held periodically
b. The firm's expectations are not established in writing
c. Employees are unclear about what needs to be achieved
d. "Shoot the messenger" management exists, implying a lack of control
e. Key data are not measured and reported in a timely manner

Answers

Answer:

d. "Shoot the messenger" management exists, implying a lack of control

Explanation:

The approach of "shoot the messenger" implies that the management of a company tend to blame the bearer of bad news as if they are responsible for the bad occurrence.

This approach causes tension and lack of communication in the workplace as employees are afraid of communicating when something bad happens.

Management is supposed to look objectively at the situation, identify the party that is responsible for the failure, and work towards rectifying it.

This is the situation in the scenario where Matilda received an e-mail from an angry client about a certain product and she hesitated to report it to her manager because she knew that he had a tendency to unfairly blame people for things

Dunning's theory of international investment is known was the electric program in the theory brand names trademarks, economies of scale, managerial skills and proprietary technology are all examples of ownership specific advantages.
A. True
B. False

Answers

Answer:

answer is true so mark me brainlist pls i beg

Help please Briefly explain how technology affects promotional strategies.

Answers

Answer: Technology has transformed marketing by making campaigns more personalized and immersive for people and creating ecosystems that are more integrated and targeted for marketers. And it's not just the interface between brands and people that have been transformed. ... 30% will prioritise technology over creativity.

Fed up with her working conditions at the university, Juanita decides to invest in a state-of-the-art sewing machine and produce limited quantities of her own clothing designs. After a few months of operation, she decides to apply some of the forecasting techniques she mastered in school. Which of these statements about her forecasts is correct?

a. Her forecasts will probably be 100% accurate.
b. Her demand forecasts for a year from now will probably be more accurate than her demand forecasts for three months from now.
c. Her demand forecasts for each style of skirt will be more accurate than her demand forecasts for all skirts.
d. The best way for her to determine the amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.

Answers

Answer:

Juanita

The correct statement about her forecasts is:

c. Her demand forecasts for each style of skirt will be more accurate than her demand forecasts for all skirts.

Explanation:

Since she has produced limited quantities of her own clothing designs, Juanita is in a better position to determine the demand for each style of skirt that she had produced.  This knowledge, which she acquired after a few months of operation, coupled with the forecasting techniques she had mastered in school, will enable her to make a demand forecast for her particular designs than she can make for all design types of skirts.

For each separate case below, follow the three-step process for adjusting the accrued revenue account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.

a. Accounts Receivable. At year-end, the L. Cole Company has completed services of $19,000 for a client, but the client has not yet been billed for those services.
b. Interest Receivable. At year-end, the company has earned, but not yet recorded, $390 of interest earned from its investments in government bonds.
c. Accounts Receivable. A painting company bills customers when jobs are complete. The work for one job is now complete. The customer has not yet been billed for the $1,300 of work.

Answers

Answer:

Dr Accounts receivable $19,000

Cr Earned service revenues $19,000

Dr Interest receivable $390)

Cr Interest revenue $390

Dr Accounts receivable $1,300

Cr Earned service revenue $1,300

Explanation:

Preparation to Record the December 31 adjusting entry

Dr Accounts receivable $19,000

Cr Earned service revenues $19,000

Dr Interest receivable $390)

Cr Interest revenue $390

Dr Accounts receivable $1,300

Cr Earned service revenue $1,300

Destaque las ventajas y desventajas que tiene un mercado libre.​

Answers

answer:

ventaja —

libertad para innovarlos clientes impulsan las elecciones

desventaja —

gamas de productos limitadaspeligros del afán de lucro

explanation:

la falta de control gubernamental permite a las economías de libre mercado una amplia gama de libertades, pero estas también tienen algunos inconvenientes distintos

A set of servers, that your project needs, has a daily lease cost of $500 for the first 20 days and the lease cost is reduced to $200 daily for any days after the first 20 days. If the team decides to purchase this set of servers, the investment cost is $11,000 and a daily operational cost of $75. (a) After how many days will the purchase cost be same as the lease cost

Answers

Answer:

After 25 days of lease, the purchase cost will be the same as the lease cost.

Explanation:

a) Data and Calculations:

Initial investment (purchase) cost = $11,000

Lease cost = $10,000 ($500 * 20)

Difference in purchase and lease cost = $1,000 ($11,000 - $10,000)

Daily lease cost after the first 20 days = $200

Additional number of days for purchase cost to equal lease cost = $1,000/$200 = 5 days

b) One can infer from the above that it will benefit the company more to purchase the set of servers by making the initial investment of $11,000 than leasing the servers.

Vaughn Company has the following equivalent units for July: materials 15340 and conversion 17700. Production cost data are: Materials Conversion Work in process, July 1 $ 8700 $ 3100 Costs added in July 68000 50000 The unit production costs for July are: Materials Conversion Costs

Answers

Answer:

Vaughn Company

The unit production costs for July are:

                                     Materials  Conversion

Cost per equivalent unit   $5             $3

Explanation:

a) Data and Calculations:

                                        Materials     Conversion

Beginning WIP                 $ 8,700          $ 3,100

Costs added in July         68,000          50,000

Total production costs   $76,700        $53,100

Equivalent units for July   15,340           17,700

Cost per equivalent unit   $5                 $3

b) The materials and conversion costs per equivalent unit are the dividends resulting from the division of the total production costs for materials and conversion by their respective total equivalent units of production.

explain the funtion of an office​

Answers

An office is the center point of organization. ... The office performs a clerical function such as information collection, recording analyzing, distribution of information and executive function such as planning, policies formulation, organization, decision making etc.

A company with few managerial levels and a short chain of command usually has a wide span of control. This is called a _____ organizational structure. Group of answer choices

Answers

Answer:

Flat

Explanation:

An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.

Basically, the organizational structure comprises of three (3) main dimensions and these are;

I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).

II. The horizontal dimension: this divides the organization into subunits.

III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.

A span of control can be defined as the number of people (employees or workers), functions, activities which are being directly controlled effectively and efficiently by a manager in an organization.

In this scenario, a company has few managerial levels. Also, all short chain of command usually has a wide span of control. This is called a flat organizational structure.

A flat organizational structure can be defined as an organizational structure that comprises of a few or no levels of middle managers between employees and the executive. Thus, it's an organizational structure that brings the top executive in direct contact with the employees such as salespeople, customer care, cashier, etc.

BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries.

a. True
b. False

Answers

Answer: False

Explanation:

The statement that "BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries" is wrong.

It should be noted that both of them are in the mobility industry. The mobility industry refers to the industry which covers the broad range of the organisations which provide products and services thar are used to support domestic and international relocations and assignments.

Can you order with a Nike gift card online?

Answers

Answer:

ok call 911 hahaha thanks for the points

What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually

Answers

Answer:

$12,556.37

Explanation:

Calculation to determine What is the future value

Using this formula

Future value = PV(1 + r)^n

Let plug in the formula

Future value = $3,100[1 + (.084/2)]^17(2)

Future value = $12,556.37

Therefore the future value is $12,556.37

Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.
1. Purchased 18,400 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.80 per unit.
2. Issued 18,400 units of raw materials for jobs that required 18,100 standard units of raw materials.
3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.10 per hour. The standard rate is $4.60 per hour. (Credit Factory Wages Payable).
4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,190.
5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Journalize the January transactions.

Answers

Answer:

1. Dr Raw Materials Inventory $69,920

Dr Materials Price Variance $1,840

Cr Accounts Payable $71,760

2. Dr Work in Process Inventory $68,780

Dr Materials Quantity Variance $1,140

Cr Raw Materials Inventory $69,920

3. Dr Factory Labor $73,600

Cr Labor Price Variance $8,000

Cr Factory Wages Payable $65,600

4. Dr Work in Process Inventory $74,474

Cr Labor Quantity Variance $874

Cr Factory Labor $73,600

5. Dr Work in Process Inventory $143,254

Cr Manufacturing Overhead $143,254

Explanation:

Preparation of the anuary transactions

1. Dr Raw Materials Inventory $69,920

(18,400*$3.80)

Dr Materials Price Variance $1,840 [18,400 x ($3.90 - $3.80)]

Cr Accounts Payable $71,760

($69,920+$1,840)

2. Dr Work in Process Inventory $68,780

(18,100*$3.80)

Dr Materials Quantity Variance $1,140 [$3.80 x (18,400 - 18,100)]

Cr Raw Materials Inventory $69,920

(18,400*$3.80)

3. Dr Factory Labor $73,600

($16,000*$4.60)

Cr Labor Price Variance $8,000

[16,000 x ($4.10 - $4.60)]

Cr Factory Wages Payable $65,600

(16,000*$4.10)

4. Dr Work in Process Inventory $74,474

(16,190*$4.60)

Cr Labor Quantity Variance $874 [$4.60 x (16,000 - 16,190)]

Cr Factory Labor $73,600

($8,000+$65,600)

5. Dr Work in Process Inventory $143,254

($68,780+$74,474)

Cr Manufacturing Overhead $143,254

In a market economy, individuals' economic lives are said to be interrelated with many other individuals and firms. almost completely controlled by government regulation. illegal and in violation of government rules on prices and sales. based more on production than on consumption.

Answers

Answer:

Interrelated with many other individuals and firms

Explanation:

market economy can be regarded as an economic system whereby decisions as regards to investment, production asvwell as distribution are been guided by the price signals which is been at up by forces of supply and demand. Inthe activities are iunplanned. It should be noted that, In a market economy, individuals' economic lives are said to be interrelated with many other individuals and firms.

Indicate for each of the following costs whether it is a product cost or a period cost.

1. Wages of aircraft mechanics employed by an airline.
2. Wages of drill-press operators in a manufacturing plant.
3. Cost of food in a microwavable dinner.
4. Cost incurred by a department store chain to transport merchandise to its stores.
5. Cost of grapes purchased by a winery.
6. Depreciation on pizza ovens in a pizza restaurant.
7. Cost of plant manager in a computer production facility.
8. Wages of security personnel in a department store.
9. Cost of utilities in a manufacturing facility.

Answers

Answer and Explanation:

The classification of the following cost i.e. either product cost or period cost is

1. Period cost as it deals with the operating expense

2 Product cost as it directly linked with the product

3  Product cost as it directly linked with the product

4  Product cost as it directly linked with the product

5  Product cost as it directly linked with the product

6  Product cost as it directly linked with the product

7  Product cost as it directly linked with the product

8 period cost as it does not directly linked with the product

9  Product cost as it directly linked with the product

hyde's headphones sells deluxe headphones for $90 each. Unit variable expenses total $50. The breakeven sales in units is 2,000 and budgeted sales in units is 4,525. What is the margin of safety in dollars

Answers

Answer:

See below

Explanation:

Given the above information, margin of safety in dollars is computed as;

= (Total sales - Break even sales) × Sales price

= (4,525 - 2,000) × $90

= $227,250

Therefore, the margin of safety in dollars is $227,250

Suppose you bought a bond with a coupon rate of 5.2 percent paid annually one year ago for $920. The bond sells for $970 today. a.Assuming a $1,000 face value, what was your total dollar return on this investment over the past year

Answers

Answer:

$102

Explanation:

Calculation to determine what was your total dollar return on this investment over the past year

Using this formula

Total dollar return =Change in price + Coupon payment

Let plug in the formula

Total dollar return = $970 - $920 + (5.2÷100*$1000)

Total dollar return = $970 - $920+$52

Total dollar return=$102

Therefore what was your total dollar return on this investment over the past year is $102

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