On January 1, a company issued 10%, 10-year bonds with a par value of $720,000. The bonds pay interest each July 1 and January 1. The bonds were sold for $817,860 cash, based on an annual market rate of 8%. Prepare the issuer's journal entry to record the first semiannual interest payment assuming the effective interest method is used.
What will be an ideal response?
| 7/1 | Bond Interest Expense | 32,714.40 | ? |
| ? | Premium on Bonds | 3,285.60 | ? |
| ? | Cash | ? | 36,000.00 |
Interest expense: $817,860 * 8% * ½ year = $32,714.40
Premium amortized: $36,000.00 ? $32,714.40 = $3,285.60
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Which of the following statements is true of the Sherman Act?
A. The Sherman Act applies only to the sale of goods. B. Price fixing in the service sector is permitted under the Sherman Act. C. Maximum-price agreements are illegal, while minimum-price agreements are not illegal. D. The Sherman Act covers services, including those performed by learned professions. E. An action is not considered to be price fixing if the prices fixed are fair or reasonable.
Which of the following is the BEST suggestion for preparing accurate documentation in a report?
a. Choose an authoritative reference manual, be consistent, and include more than enough rather than too little information for citations and references. b. Use more then one authoritative reference manual, be consistent, and include citations only for sources you quote. c. Use the MLA style guide for all reports, be consistent, and include only the author, article title, and publisher information. d. Use the Publication Manual of the American Psychological Association for all documentation and the MLA Handbook, only if needed, as a backup for format.
The singular possessive form of the word "broker" is _____
Fill in the blank(s) with correct word
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 1/10, n/30 for $17,100. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:
A. $17,100 in the Other Accounts Dr. column and $17,100 in the Inventory Cr. column. B. $17,100 in the Accounts Payable Cr. column and $17,100 in the Inventory Dr. column. C. $17,100 in the Inventory Dr. column, $16,929 in the Accounts Payable Cr. column, and $171 in the Purchase Discount Cr. column. D. $16,929 in the Inventory Dr. column and $16,929 in the Accounts Payable Cr. column. E. $17,100 in the Accounts Payable Cr. column and $17,100 in the Supplies Dr. column.