Business, 21.05.2020 00:12 megan5192

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a note, agreeing to pay Curvy Company $320,000 for the equipment on December 31, 2021. The market rate of interest for similar notes was 8%. The present value of $320,000 discounted at 8% for three years was $254,026. On January 1, 2019, Straight Industries recorded the purchase with a debit to equipment for $254,026 and a credit to notes payable for $254,026. On December 31, 2019, Straight recorded an adjusting entry to account for interest that had accrued on the note. Assuming no adjusting entries have been made during the year, the interest expense accrued at December 31, 2019 is closest to:.
a. $27,493.
b. $25,403.
c. $29,693.
d. $32,000.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:00

What is the correct percentage of texas teachers charged with ethics violations each year?

Answers: 2

Answer

Business, 22.06.2019 11:20

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

Answer

Business, 22.06.2019 11:30

Which of the following is not an example of one of the four mail advantages of prices on a free market economy

Answers: 1

Answer

Business, 23.06.2019 00:30

Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. price elasticity of demand for x is a. 0 b. 6 c. 1 d. 36

Answers: 2

Answer

You know the right answer?

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Stra...

Questions