On January 1, 2016, Smalls, Inc. issued $60,000 of its 12-year 10% bonds for $52,584. Interest is payable annually and the effective yield was 12%. Costs connected with the issue totaled $3,200.Required:
a.Prepare the entry to record the issuance of the bonds.b.Prepare the journal entry to record interest expense in 2017 using the effective interest method.c.Prepare the journal entry to record interest expense in 2017 using the straight-line method.

What will be an ideal response?


?

a.Cash ($52,584-$3,200)52,584?
?Discount on Bonds Payable7,416?
??Bonds Payable?60,000
    
  Deferred Debt Issuance Costs3,200 
        Cash 3,200
????
b.Bond Interest Expense6,614?
??Deferred Debt Issuance Costs?267
??Discount on Bonds Payable?347*
??Cash?6,000
??
??*BV of BondsInt.Int.Disc.
??@ Beg. of Yr.Exp. (12%)Pd.Amort.
?201652,5846,3106,000310
?201752,8946,3476,000347
?
c.Bond Interest Expense6,885?
??Deferred Debt Issuance Costs?267*
??Discount on Bonds Payable?618**
??Cash?6,000
????
?*3,200/12 = $267 per year??
?**7,416/12 = $618 per year??
???

Business

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Calculate the residual income for the Healthcare Division.
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C) $114,000
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Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.    Work in process, beginning:   Units in process 900? Percent complete with respect to materials 40?%Percent complete with respect to conversion 20?%Costs in the beginning inventory:   Materials cost$530? Conversion cost$2108? Units started into production during the month 16,000? Units completed and transferred out 16,000? Costs added to production during the month:   Materials cost$32,180? Conversion cost$416,512? Work in process, ending:   Units in process 900? Percent complete with respect to materials?50?%Percent complete with respect to

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Indicate whether the statement is true or false

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The project manager role and responsibility that keeps up with current technology developments and is the "go-to" person for a project is the

A) administrator role. B) consultant role. C) coordinator role. D) supervisor role.

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