On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $353,122. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)
A. Debit Bond Interest Expense $20,012; credit Premium on Bonds Payable $1312; credit Cash $18,700.
B. Debit Bond Interest Expense $20,012; credit Discount on Bonds Payable $1312; credit Cash $18,700.
C. Debit Bond Interest Expense $17,388; debit Premium on Bonds Payable $1312; credit Cash $18,700.
D. Debit Bond Interest Expense $17,388; debit Discount on Bonds Payable $1312; credit Cash $18,700.
E. Debit Interest Payable $18,700; credit Cash $18,700.
Answer: C
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Alchemy Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had no beginning inventory. During January, 56,000 fl. oz. of chemicals were started in production. Of these, 30,000 fl. oz. were completed and 26,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. The weighted-average method is used.
At the end of the month, Alchemy calculated equivalent units. The ending inventory in the Mixing Department was 75% complete with respect to conversion costs. With respect to direct materials, what is the number of equivalent units in the ending inventory? A) 19,500 equivalent units B) 30,000 equivalent units C) 56,000 equivalent units D) 26,000 equivalent units
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A team can be defined as people who work together, for a period of time, to achieve a goal
Indicate whether the statement is true or false.
News and financial articles about changes in a supplier’s financial condition are an example of a(n) ______.
A. internal source of information B. external source of information C. financial source of information D. supplier source of information