After aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400 . If the accounts receivable total $130,000, the net receivables would be
a. $128,800.
b. $129,600.
c. $128,400.
d. $128,000.
a
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On May 7, Carpet Barn Company offered to pay $95,000 for land that had a selling price of $110,000. On May 15, Carpet Barn accepted a counteroffer of $103,000. On June 5, the land was assessed at a value of $120,000 for property tax purposes. On
December 10, Carpet Barn Company was offered $145,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using the effective interest method of amortization is:
A. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. B. Debit Bond Interest Expense $12,487.08; debit Discount on Bonds Payable $1,012.92; credit Cash $13,500.00. C. Debit Bond Interest Expense $12,487.08; debit Premium on Bonds Payable $1,012.92; credit Cash $13,500.00. D. Debit Interest Payable $13,500; credit Cash $13,500.00. E. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00.
Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured
a. True b. False Indicate whether the statement is true or false